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Bitcoin, Ethereum and Bitcoin Cash have recovered around four percent in the last 24 hours, as the cryptographic market added $ 8 billion to its valuation.
On August 11th, the cryptographic market lost more than $ 12 billion in its valuation because the major cryptocurrencies recorded huge losses. Since then, the market has recovered slightly, but the momentum of the main digital assets remains weak.
Drastic turn of the momentum in five days
On 7 August, the value of the global cryptocurrency market was around $ 257 billion, supported by the price stability of both Bitcoin and Ether, Ethereum's native cryptocurrency, respectively at $ 7,300 and $ 400.
Since then, in less than five days, the price of Bitcoin and Ether has dropped to $ 6,300 and $ 320, reaching $ 5,980 and $ 305 at their lowest point. 11 August. In five days, more than $ 43 billion was wiped out of the market.
It is evident, given the sharp decline in the evaluation of the encrypted market, that the major cryptocurrencies have faced a strong downward trend in recent weeks. Apart from Bitcoin, the most dominant digital resource on the market, almost all the major cryptocurrencies and tokens lose a significant part of its value.
Ether, for example, was one of the worst performing digital assets throughout August, despite showing momentum from January to July. Some analysts have attributed the sharp drop in Ether's price to the ETH sell-off by initial coin offerings (ICOs) and blockchain projects.
Ether's dumping on public cryptocurrency exchanges with large-scale blockchain projects explains why one of the most performing cryptocurrencies of 2018 lost more than its market valuation compared to any other major digital asset in the last week.
For the cryptocurrency market experience a reversal of trend and momentum, not only an increase of 1% to 5% but an increase of 40-50% of its value, a drastic change in its volume and price trends will have to be recorded, which means that Bitcoin should ensure momentum at higher resistance levels.
In the short term, considering the excessive strong downward trend of the market, it is difficult to see even large cryptocurrencies that record corrective rallies in a better position to start a medium-term rally.
At this point, a more plausible situation I The major cryptocurrencies are extending to the lower price range, building stability for a few weeks and starting a strong rally. The probability of cryptocurrencies suddenly increases in value from 10 to 20 percent, as Bitcoin did at the end of June, it is low.
Bitcoin is in a better position?
Willy Woo, a respected cryptocurrency analyst who predicted the price of Bitcoin slowly extinguishes from $ 9,000 to $ 6,000 at the end of May, said:
"Looking at Chris's chart, we see that BTC is much stronger this time. (Compare the OBV indicators in the same time frame is a great way to see them more clearly.) There is a lot of ongoing purchases behind fear and capitulation. "
As mentioned above, it is of utmost importance to BTC and other cryptocurrencies to create momentum and stability, to support the next medium-term rally.
Close-up image of Shutterstock. TradingView Charts.
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