Home Cryptocurrency Bitcoin Correction trend of cryptocurrency markets continues

Correction trend of cryptocurrency markets continues


Share This On Social

The correction trend of cryptocurrency markets continues, moving the Bitcoin price below 3,900 USD. The daily loses of the major cryptocurrencies are minimum, located in the range of 0.5-2.0%. No major news keep the prices moving down with Bitcoin still consolidating around the 3,850 USD mark.

The Ethereum is moving down by 1.3% to 133.00 USD, while Ripple decreases by 0.2% to 0.3099 USD. Litecoin and EOS are also in correction, dropping by 2.0% and 2.5%.

For now, the focus seems to be on the drop in volumes that is weighing on volatility.

The total value of the cryptocurrency market slightly fell to 133.461 billion USD.

Bitcoin analysis

Bitcoin is trapped in a trading range defined by the 200-week simple moving average and the 200- week exponential moving average, currently at 3,404 USD and 4,106 USD, respectively. Therefore, the outlook as per the weekly chart is neutral.

Over the past three days, the coin was trading around the range of the past 18 days – 3,750 USD from below to 3,950 USD from above.

The cryptocurrency needs a break above the upper edge needed to confirm a longer-term bull reversal. Conversely, a move below the lower bound of the range could revive the bear market.

Bitcoin is bouncing off a short-term area of interest visible on the 1-hour time frame. This could keep it on track towards testing the next upside targets marked by the Fibonacci extension tool.

Price is closing in on the 38.2% level at the 4,000 USD major psychological mark, which might serve as a take-profit point again. The 50% level lines up with the swing high around 4,040 USD that might also lead cautious buyers to book profits. Stronger bullish momentum could take price up to the 61.8% Fib at 4,062.80 USD or the 78.6% level at 4,100 USD. The full extension is located at 4,168.70 USD.

The 100 SMA is above the longer-term 200 SMA, for now, to indicate that the path of least resistance is to the upside. However, the gap between the indicators has narrowed enough to signal weaker bullish momentum and a potential bearish crossover. In that case, the price might dip below the area of interest again and head back to the lows at 3,770 USD.

Bitcoin traders appear to be holding out for major catalysts that could confirm that the bull run isn’t over, as the price would likely to clear several upside barriers before drawing more buying interest.

Ripple analysis

There was a slow and steady decline in ripple price below the 0.3120 USD resistance. Ripple extended declines recently and revisited the 0.3045 USD support level. The price recovered above 0.3060 USD, but it struggled near the 100 hourly simple moving average.

There is a crucial bearish trend line in place with resistance at 0.3100 USD. The pair must settle above 0.3100 USD and the 100 hourly SMA to gain bullish momentum.

Currently, XPR is the third largest cryptocurrency, with a market capitalization of 12 billion USD. The digital asset aims to overtake Bitcoin or get closer to it in the next few years or months.

Its power lies in the way it is designed to be adopted by the banks. XPR gained popularity at the beginning of 2018 when it rises to just over 3 USD.

It is very promising and the team is working hard to achieve great things. Many analysts predicted the breakthrough of the XPR when they noticed that Ripple was partnering with over 100 banks.

However, according to some banks, the cryptocurrency is a little bit overvalued.

It is important to understand that there is a difference between XRP and Ripple. These are two different things. The situation is different from Bitcoin, which community is the same as the currency. Ripple is the company, XRP is the currency.

Ripple has three products: xCurrent, xRapid, and xVia.

The xCurrent helps banks transfer money efficiently across borders and uses RapidNet. RapidNet is a Ripple block. xCurrent as a product does not use XRP.

xVia helps countries outside banks to carry out transactions across banks. It also does not use XRP.

The only product that uses XRP is xRapid. xRapid helps improve the liquidity of new banks.

Out of over 100 partnerships with financial institutions, only one that is not a banking financial institution, called Cuallix from Mexico, uses xRapid. The other partnerships are related to xCurrent. When Ripple announced on its website that they had a successful partnership with a financial institution, you should understand that Ripple as a company succeeds, but XRP that exists outside the company may have little or no impact.

Also, the nature of XRP makes it very easy to disappear from the system just like some digital currencies in the past, including Liberty Reserves. Ripple controls 62% of existing XRP tokens, which casts doubt on its decentralized status or as a “centralized digital asset”. This makes it different from Bitcoin, which can not be controlled by a centralized country.