This week, the most volatile of the last three months for the crypto market, is about to end. During these days, in fact, there have been several double-digit movements, both upwards and downwards.
Trump’s statements affect the crypto market
This week began with statements by Federal Reserve President Jerome Powell last Friday, who during a hearing in the US Congress called bitcoin “digital gold”. A few hours after these statements Trump intervened and, via Twitter, made his negative position towards bitcoin and cryptocurrencies quite clear, he also expressed himself with regard to Libra.
Initially, the crypto market was not affected at all, on the contrary, between Friday and Saturday it reacted positively. During the week, however, tensions increased with significant movements that became apparent on Wednesday with significant declines. Such strong falls were not recorded since last June and previously since last December, with losses of up to 30% for some coins.
Following the falls at the beginning of July, from last week’s relative highs, prices this week fell to an equal extent, by 25%, for bitcoin.
The decline of Ethereum and Ripple
More serious this week was the downward movement of Ethereum: -40% from the July 9th highs.
The situation with Ripple is even worse: it was already showing signs of weakness and uncertainty in recent weeks, but in recent days it has dropped even more reaching lows on Tuesday, July 16th, which brought it below the threshold of last December, when it had rejected the bear attacks four times.
On Tuesday, prices fell to their lowest low since last September 2018, recording 28.25 cents. The minimum was set at $0.2850.
The week shows a negative balance, based on the Friday afternoon closing. Among the cryptocurrencies of the top 20, all the declines are in double digits. The most notable ones is that of Ethereum, which loses 20%. Worse than Ethereum there is only Dash who loses about 30% from last Friday’s figures.
To find the first positive sign of the crypto market of the week you have to go down to the 29th position occupied by VSystems (VSYS), the only one among the first 30 that manages to earn on a weekly basis 23% and the only one with the green arrow.
This week has thus seen trading volumes well above the average of the last two months. In order to find such high volumes on a weekly basis, it is necessary to go back to May.
The dominance of bitcoin (BTC)
The week also saw the return of bitcoin close to approaching 67% of dominance that it has not seen since March 2017. It is the confirmation that in the phases of difficulty bitcoin becomes a safe haven cryptocurrency.
This is an important signal for bitcoin after the difficulties of the first quarter of 2019: bitcoin is back as the queen of cryptocurrencies. Its capitalization returns below 200 billion dollars but gives important signals. Ethereum reaches 23 billion, while Ripple sinks to 13 billion. From a technical point of view, the signal provides reassurance and will be the fundamental technical basis from which the first signals of a possible rebound can possibly be found.
The rebound took place between Wednesday and Friday with increases that made it record +20-30% from the lows of Tuesday afternoon, but everything has to be contextualised with a technical rebound.
To return to see significant levels it is necessary for bitcoin to recover the 11,000 dollars, for Ethereum it is necessary to get to 255 dollars, while Ripple is within a congestion between 30-40 cents that characterised the first 5 months of 2019.
With the return into this channel Ripple gives no signs of a possible recovery or a return to 50 cents, levels that had conquered at the end of June after more than 8 months of lateral agony.
