The market value of all cryptocurrencies within the digital asset economy has dropped significantly over the past few days. Since the last year’s all-time high, most cryptocurrencies have lost between 60-70% of those gains. While lots of coins are following suit in relative unison with BTC/USD market losses, some digital currencies have received more severe cuts in value.
Bull Traps, Bear Runs, and Falling Knives
The digital currency bear market is still in full swing this week even though many cryptocurrency enthusiasts are begging for the storm to end. Meanwhile, other proponents are using the lower prices to get some cheaper cryptocurrencies as they believe the bull market will return soon. At the moment BTC/USD markets are kicking back into gear after reaching a low of $6,590 a few hours back and now bulls have breached past $7K once again. Market volume has not changed over the past few market updates and still rests at around $5.9Bn in 24-hour trade volume. Top exchanges processing the most volume this evening are Bitfinex, Binance, Okex, Huobi, and Bitflyer. Over the past seven days, BTC/USD markets have lost 19 percent in value but markets are up over the past 24 hours.
The Japanese yen is still dominating the pack of currencies traded against BTC as the fiat currency captures 54 percent at the time of publication. This is followed by the USD (23%), tether (USDT 12.5%), the euro (4%), and South Korean won (2.8%). Of course during the dumps tether volume is seeing demand as it’s the only currency that’s been in the green all week long. Another interesting thing to notice is USDT is occupying the second highest volume just under BTC and above ethereum (ETH). The biggest trade on Shapeshift this evening is trading BTC for ETH as 44 percent of Shapeshifters are trading BTC for another currency.
Looking at the 4-hour window showed some earlier retractions and a bearish MACd and RSI. The 100 Simple Moving Average (SMA) is well below the long-term 200 SMA which indicates the path to resistance may continue to the downside. Projections today pushed well below the 78.6 Fibonacci Retracement level as BTC/USD prices touched $6,590. A crucial low below $5,900 would mean a double bottom or lower than prices that scarred markets just a few weeks ago. Looking at order books, if bulls manage to gather some momentum then the resistance past $7,500 and $8K might not be that bad to manage. However on the backside, order book foundations are far more solid around $6,400 than they are now.
The Top Digital Asset Markets
Most cryptocurrencies are up right now, but over the past seven days they have all suffered immensely. The second highest market capitalization held by ethereum is down 23 percent as one ETH is around $411 per token. Ripple (XRP) lost 20 percent this week and XRP prices are $0.52 cents right now. Moving on to the fourth highest market valuation, bitcoin cash (BCH) is down 28 percent over the past seven days. BCH market values are around $727 per coin this evening. Lastly, litecoin (LTC) markets are still resting in the fifth position but LTC values are down 26 percent this week as prices are around $122.
When Will the ‘Crypto-Winter’ End?
Traders are either having fun surfing the shorts all the way down or they don’t know what to think as it’s been a tumultuous trading season this year. So far most of the market action in 2018 has been downward prices and a long bear market. Short contracts on Bitmex are stacked more than longs and traders in forums are calling for a double bottom. Some of them are repositioning their musical chairs either trying to catch a falling knife or profit from a bullish reversal.
Where do you see the price of BTC and other digital assets heading from here? Do you think cryptocurrencies will see more gains? Let us know in the comments below.
Disclaimer: Price articles and markets updates are intended for informational purposes only and should not to be considered as trading advice. Neither Bitcoin.com nor the author is responsible for any losses or gains, as the ultimate decision to conduct a trade is made by the reader. Always remember that only those in possession of the private keys are in control of the “money.”
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The post Markets Update: Cryptocurrencies Lose Over 20 Percent This Week appeared first on Bitcoin News.
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Author: Jamie Redman