The past week saw a lot of movement in the crypto market as Ripple, capitalizing on its financial institution’s flexibility in terms of acceptance continued to make headlines overhauling all other cryptocurrencies every now and then to secure a bronze tier and the most powerful cryptocurrencies — Bitcoin and Ethereum, including others, experienced a steep double-digit fall.
The entire market recorded a drop of more than $63 billion as the price of BTC declined to $3,456 on fiat-to-cryptocurrency exchanges like Coinbase and Kraken.
While, Bitcoin (BTC), the currency which rules the roost, dropped by 12 percent (from $4.300 to $3,800) setting a new yearly low, Ethereum (ETH) fall to $98. However, it’s currently exhibiting a daily volume which outperforms Ripple (XRP) and Bitcoin Cash (BCH) combined at $2.2 billion.
Charting the performances — Bitcoin at $3,456 and Ethereum at $98, reveals an oscillator that has reached a low extreme. Though the recovery has been rough for all the digital assets, BTC recovered comparatively faster from a low of $3,400 to a recovered high of $3,700 within few hours.
Initially, the price of BTC declined to $4,000, in the wake of which a lot of investors predicted a possibility of further fall below the mark of $4,000 given that at $4,000, BTC was experiencing a drop which is 79% low from its all-time high.
As soon as the BTC’s expected drop came into sight, investors and traders got a comfort zone to find a short-term bottom in the BTC’s price trend.
To exemplify, here’s what Alex Krüger, a cryptocurrency trader and economist, said –
“Think that was it. Impossible to know if a bottom is a short or long-term bottom. Possible to sense once a major bottom may be in by looking at high-frequency price bars and volume i.e. when the elastic is ready to snap back. If it swings 15-30% off the lows, that’s a major bottom in % terms.”
Meanwhile, Hsaka, a technical analyst, was recorded to be bent towards the opinion that it’s too early to call a short-term bottom for Ethereum. He took into consideration the steeper fall Ethereum underwent in comparison to BTC.
“Really stumped here. That wick could be chalked up to cascading liquidations and thin books. Looking for a HL on any retrace to confirm a daily bottom,” said Hsaka.