Bitcoin and Altcoins at Continued Risk of Weakness
This past week, there was a sharp bearish turn in bitcoin below the USD 3,800 and USD 3,700 support levels. BTC/USD even broke the USD 3,620 support and spiked below USD 3,500. Many altcoins such as ethereum, ripple, litecoin and EOS followed a similar path and declined heavily. ETH/USD traded below the USD 135 support to settle in a bearish zone. XRP/USD broke the key USD 0.340 and USD 0.325 supports to start a major downward moves. At the outset, the market is consolidating (UTC 08:20 AM) losses and remains at a risk of more losses in the coming sessions.
Total market capitalization
After trading in a range, bitcoin price declined sharply below USD 3,580 and USD 3,500. It tested the USD 3,450 support and later corrected a few points. An initial resistance on the upside is at USD 3,550, above which the main weekly resistance is at USD 3,620. A daily close above USD 3,620 and USD 3,700 is required for a decent comeback in the near term.
On the downside, the USD 3,450 support is a pivot level, below which there is a risk of an extended decline towards the USD 3,320 and USD 3,200 support levels.
Ethereum price tumbled from well above the USD 140 support and declined below the USD 120 level. ETH/USD tested the USD 110 support and it is currently correcting higher.
On the upside, an initial barrier is near the USD 120 level, above which the weekly resistance is at USD 128. If there is a successful break above USD 128, the price may recover to USD 135. On the downside, the key supports are USD 112, USD 110 and USD 106.
Bitcoin cash, eos and ripple price
Bitcoin cash declined below the USD 130 and 125 support levels. BCH/USD traded close to the USD 120 level and it is currently consolidating. On the upside, the pair is likely to face hurdles near the USD 130 and USD 135 levels.
EOS failed to break the USD 2.50 resistance recently and declined below the USD 2.25 support. It is currently trading near USD 2.30 and it may soon resume its decline towards USD 2.15 or USD 2.10.
Ripple price settled below the USD 0.340 support to move into a bearish zone. XRP/USD even spiked below the USD 0.310 level and upsides near the USD 0.320 and USD 0.325 levels are likely to remain capped.
Other altcoins market today
During the past few sessions, a few small cap altcoins extended declines more than 8%, including HC, REPO, BSV, REP, QASH, STEEM, MANA and NPXS. Out of these, HC declined around 16% and REPO is down close to 12%.
Overall, bitcoin is clearly trading in a downtrend below USD 3,600 and 3,700. As long as BTC/USD is below USD 3,700, there is a risk of additional losses below the USD 3,500 and 3,400 levels in the coming days. Likewise, ethereum and ripple might drop towards the USD 105 and USD 0.300 levels in the near term.