On Monday morning, the cryptocurrency market woke up horribly, with the market re-establishing the lows from the start of the year amidst a dive.
Bitcoin may have sprained the "ankle" But the Altcoins have broken some "bones"
The cryptocurrency market remains on thin ice, with Bitcoin exceeding the level of support ever so important at $ 5,800 , while the overcoins threaten to drag the price of BTC with them. At the time of publication, Bitcoin is down 1% on the day, falling to $ 6,250, which is only a small step down from the $ 6,400 level set on Saturday afternoons.
As reported by Ethereum World News, Jeff DeGraaf, a well-known Wall Street technical analyst, sees the level of ~ $ 5,700- $ 5,800 as a support line near life or death, where a move below that level could put the cryptocurrency market in a "game over" phase. DeGraaf elaborated, stating:
"The parabolic moves are notoriously dangerous for short-sellers … Usually, a top is developed that often appears as a descending triangle for months, with reduced volatility and little [fanfare]. Once the upper part of the support violation has been completed, the security in question can often be considered permanently compromised or even "game-over." Obviously we are quoting Bitcoin as "A" in today's market.
So the fact that Bitcoin has not passed the $ 5,800 support line may be a silver coating in a stormy market.
Although bitcoin has remained relatively strong in the face of tribulations, the altcoins have begun to suffer, metaphorically breaking some "bones" on the path of the lows since the beginning of the year.Most of the altcoins are currently recording losses of 5%, while some altcoins have even worse to if you can believe it.
Today's attack of altcoin sell-side has brought the power of the Bitcoin market to an impressive 52.5%, which is the highest since the cryptic boom in December as digital gold hit the price of $ 20,000 a piece briefly.
Ethereum falls below $ 300 for the first time since November 2017
down, one player stands out from the rest. Sadly, instead of positively detaching himself from the "altcoin crowd", this is a case of Ethereum that protrudes like a sore thumb. Ethereum has undoubtedly worsened it today, as it has become the only cryptographic asset to fall by more than 10% at an earlier time.
At present, the price of ETH has just passed below $ 300, which is the first one has moved to this level since November 2017.
In the last week, Ethereum is decreased by over 28%, while Bitcoin recorded "only" a loss of 10%. With this devastating downward move, some asked: "Why is the price of Ethereum so low compared to other sectors?"
As reported by Bloomberg, this specific chapter episode with Ethereum was widely attributed to a large sale – from ETH funds raised by ICO projects. Biswa Das, who works at Crypto Hedge Fund BloomWater Capital, commented on this event, stating that the market is too fragile to suffer an ICO sale in the following statement:
"These startups are collecting lots of money but do not have treasury management or sufficient liquidity management experience, so they are selling too soon and causing a lot of pressure in the market.The last year was fine, but right now the market is so fragile that it causes a lot of pressure. "
While Ethereum is already pressed for months with this factor, Spencer Bogart of Blockchain Capital says it could be all but over, since there are still hundreds of thousands, if not millions of ETHs, that are still prepared to be sold en masse in exchanges of open orders.
However, it remains to be seen whether a drastic downward trend of Ethereum will drag down the rest of the market into icy cold waters, which could be ready to scream at the feet of cryptocurrency investors.
Photo by Erica Nilsson on Unsplash