Analysis of Bitcoin, Ethereum and Ripple weekly losses
Last week, it was like a trail of horror for the crypto market, which ended with a downward spiral on Tuesday. Let’s take a look at the top three coins in the last week.
Tuesday was a heavily bearish day for BTC/USD, with the price dropping from $ 11,020 to $ 9,370. BTC/USD recovered slightly earlier today and traded around $ 9,520. So, the main crypto currency registered a decline of 25.92% within the last seven days. Some analysts believe that the current pressure on Bitcoin is a technical factor driven by sellers taking control of the market after the dominant crypto coin dropped below the key support levels of $ 11,000 and $ 10,700. Whatever is the reason, the bears on BTC/USD marked their strongest week since March 2018.
ETH/USD fell from $ 234.50 to $ 192.71, losing a staggering 35% of its value. ETH/USD is on course to finish its worst week since September 2018. XRP/USD, on the other hand, is on course to mark its fourth downside week in a row. XRP/USD fell from $ 0.32 to $ 0.2864. In the last four weeks, XRP/USD dropped from $ 0.4962 to $ 0.2864, losing about 40% of its estimate.
What are the reasons for this fall?
In my opinion, the latest fundamental news from the United States is at the root of this collapse. On the one hand, the criticism of Bitcoin by US President Trump and Treasury Secretary Mnuchin may have contributed to the fall. In addition, US lawmakers “grilled” Facebook because of the company’s plans for its own crypto currency. And this shows that political and regulatory control over digital coins is intensifying.
The social media giant is struggling to attract Washington on his side after it shocked regulators and lawmakers with its announcement on June 18 that it was hoping to release his own coin called Libra in 2020.
David Marcus, CEO of Calibra, will speak to the Congress on July 16-17. With that in mind, I think it is likely that the crypto currencies will continue to decline. Now, the question is about the future attitude of the authorities towards to the crypto market as a whole. Ultimately, if such a bill to ban the release of digital currencies become a law, it should put a heavy pressure on Bitcoin and the whole altcoins market.
Ethereum Price Analysis
The technical analysis shows that the price of Ethereum is currently highly underestimated, so any upside correction may be on the horizon.
On the daily chart, ETH/USD broke below the bottom line of the 20-day Bollinger band, indicating that it is undervalued. At the same time, the widening of the channel, or so-called Bollinger jaw, indicates growing market volatility.
Meanwhile, it looks like the 50-day SMA is looking to cross the 20-day SMA on the daily chart, which is a bearish signal. And the signal line is diverging away even more from the convergence/divergence line of the MACD indicator, showing increasing bearish momentum. The Relative Strength Index (RSI), however, enters the oversold area.
Author: Silviya Velcheva
* The views expressed in this material do not constitute a recommendation or advice for the purchase or sale of cryptocurrencies in the digital assets market or other financial instruments. The predicted forecasts meet the expectations of the author of the material and may not materialize. Trading in currencies, contracts for differences on margin or cryptocurrencies poses a high risk and may not be suitable for all investors. Past results are not a guarantee of future success.