The bull cycle of the crypto market pauses

  • Bitcoin declined by $ 13,500, forced to retest 50 SMA support as $ 12,500 calls.
  • Ethereum’s price slips to the critical support set at $ 380 in a potential breakdown of $ 370.
  • Ripple is back in the hands of the bears as a breakdown to $ 0.22 of primary support looms.

Cryptocurrencies across the board are caving in as Bitcoin-led selling pressure intensifies. The flagship cryptocurrency reversed its uptrend on Thursday, topping $ 13,500. However, a flurry of headwind sent chills across the market as BTC slipped back to $ 13,000.

All major cryptocurrencies are nurses injuries, especially those in the top ten. Polkadot is the worst hit having lost over 8% of its value in the past 24 hours. Binance Coin (BNB) also struggled to sustain its uptrend, hence a loss of 6.6%. Likewise, Chainlink fell 5.8% over the same period to trade at $ 10.9.

Total market capitalization dropped to $ 394 billion after climbing to a weekly high of $ 409 billion. On the flip side, 24-hour trading volume rose to $ 157 billion from a peak of $ 100 billion, highlighting the ongoing selloff.

crypto market capitalization

Crypto Market Cap Chart

Bitcoin’s downside points to $ 12,500 if key support fails to hold

The bellwether cryptocurrency is in the midst of a retreat from levels slightly above $ 13,500. The drop triggered a minor weekend sell-off in the market. Meanwhile, Bitcoin hovers above the 50 Simple Moving Average (SMA) in an effort to stop potential losses below $ 13,000.

According to the Relative Strength Index (RSI), BTC / USD is mainly in the hands of bears. Buyers must defend the support at the 50 SMA and $ 13,000; otherwise, the downside could extend below $ 12,500, possibly even testing the 100 SMA.

BTC / USD price chart

BTC / USD 4-hour chart

It is worth mentioning that the bearish outlook will be invalidated if the 50 SMA support remains intact and BTC resumes the uptrend, settling above $ 13,500. The price action at $ 14,000 is likely to suffer rejection around the June 2019 high. However, if BTC / USD rises above $ 14,000, it would plummet to $ 15,000.

Ethereum is on the verge of a collapse at $ 370

Ethereum retreated nearly 10% from its October highs at $ 420 due to the steadily growing bearish hold. Selling pressure has also increased, particularly below $ 400.

The final blow is the break below a critical uptrend line, taking the price to the support at $ 380. If a reversal fails to come into play, the lower leg could extend up to 200 SMA (marginally above $ 370) over the span of 4 hours. The Relative Strength Index (RSI) reinforces the selling pressure as it plunges into the oversold area.

ETH / USD price chart

ETH / USD 4-hour chart

On the other hand, the bearish narrative will be invalidated if Ethereum reclaims the support of the ascending trend line. Similarly, if Ether closes the day above the 100 SMA, the price could rise to $ 400 and possibly test the resistance of the 50 SMA. It is essential to keep in mind that the price action towards $ 420 can be delayed due to seller congestion at $ 410.

Ripple lactating bulls wounds

The cross-border cryptocurrency continued to decline as anticipated on Thursday. A break below the ascending triangle channel triggered a sell-off as more sellers added to the market. Additionally, Ripple finished the day below the 200 SMA, adding credit to the bearish outlook.

XRP / USD is fluctuating at $ 0.237 amid increasing downside momentum. The Moving Average Convergence Divergence (MACD) is reinforcing the selling pressure as it explores the negative region. Additionally, a bearish divergence from the MACD highlights the intense sell-off from sellers. If the short-term support at $ 0.2350 caves, XRP could plummet to $ 0.23 and $ 0.22, respectively.

XRP / USD price chart

XRP / USD 4-hour chart

To invalidate the bearish outlook, XRP must recover ground above the recently broken ascending triangle hypotenuse. Similarly, closing above the 200 SMA will strengthen investor confidence in the recovery mission at $ 0.26 (x-axis).

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