Summary:
- Deep falls on Bitcoin weighed on other cryptocurrencies
- Ripple breaks out of the overbalance structure
This week has not been the best for cryptocurrencies to say the least. A huge decline that occurred on Bitcoin on Wednesday (it took only 15 minutes take BTC down by 7.5%!) weighed on other digital currencies. Overall market capitalization has fallen $12 billion as a result of this week’s losses. This substantial pullback may have had something to do with Zuckerberg’s hearing as well as the Facebook’s project called Libra. Let us remind that last week we wrote about seven payment processors withdrawing their support for the Libra project.
Start investing today or test a free demo
Open account Try demo Download mobile app Download mobile app
Technically we may notice that before a steep decline on Bitcoin, the price was moving within a tight range indicating investors were undecided where to head next. Breaking below the 50DMA was a trigger which subsequently pushed the price well lower. When we look at the daily time frame we see that both 200DMA and 50DMA are closing in, which could result in a death cross pattern. When this pattern occurred lastly it pushed Bitcoin down by roughly 60%. The major resistance could be found nearby $7825. Source: xStation5
Ripple broke out of the overbalance structure earlier this week and then fell toward $0.264, the level underpinned by the 50% retracement of the latest price movement. Currently bulls are struggling with the important technical level placed at $0.277. Once they are successful, it could see the price rising up to $0.3. Otherwise, the strong support could be found nearby $0.264 and then at $0.233. Source: xStation5
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
