After turbulent mid-week action, we saw BTC trading in range, around the $6400 level on Friday, September 7th. Total crypto market cap hit $200 million and the biggest cryptocurrency briefly achieved 55% of market dominance, highest point since last December. The cryptocurrency market lost nearly $40 billion from its valuation in less than 24 hours between Wednesday and Thursday, demonstrating one of the steepest declines in the past three years.
Even Goldman Sachs Chief Financial Officer Martin Chavez calling the report that the bank was ditching plans to launch a cryptocurrency trading desk “fake news”, did not bring end to the misery. Chavez said the bank was working on a bitcoin derivative known as a “non-deliverable forward,” because of demand from clients.
Additionally, the U.S.-based crypto exchange and wallet service, Coinbase announced it is looking to create a cryptocurrency-based exchange-traded fund (ETF) with the help of the Wall Street investment management giant BlackRock.
BTC was stable during early hours trading on Saturday and was preparing for yet another week in the so called mid-6000 corridor (6200-6600) when another sudden drop occurred. Bitcoin lost almost $300 in value in less than 2 hours after dropping from $6435 to $6156 on Saturday evening European time. Tokens continue bleeding intensively multiplying losses against BTC pair.
BTC could make up for some of the losses and almost touched $6500 (6495) in the early hours on Sunday and now sits at $6380, with almost 0% change for the last 24 hours. Trading volume remained almost unchanged for the same period, at 3.9b. Actually, the BTC trading volume saw significant drop from Thursday when it hit $7b to $5.6b on Friday and $3.5b on Saturday.
Bitcoin and the rest of the market are still on a clear downtrend. However, I think that long term deep decline below the $6k level is very unlikely and this will be the major support for us, next being $5800 – a run towards this level followed by a reversal should not surprise. Upwards, the targets remain the same – $6600; $6800, $7000, $7200.
Ethereum continued its slow decline on Friday and lost approximately 2.8% for the day reaching $216 as its lowest point. ETH bulls were trying hard to defend the psychological level of $200 but were unable to push prices higher given the tremendous pressure the most popular altcoin was under.
For the 12h period between 17:00 CET on Saturday and 05:00 CET on Sunday, ETH experienced an even sharper decline in price and dropped from $216 to $187, breaching the $200 support line. Even though the bulls could push the price above $200 once again, it looks like Ethereum is up for a long bottoming with no signs of revival. It looks to me the project is under heavy fire from all sides and only stable BTC bull run can save it.
In an interview with Bloomberg at an Ethereum and blockchain conference in Hong Kong, Vitalin Buterin shared his opinion that “the blockchain space is getting to the point where there’s a ceiling in sight…” and “there isn’t an opportunity for yet another 1,000-times growth in anything in the space anymore”.
This is in addition to his statement earlier this early that ETH and all cryptocurrencies can literally drop to 0 any given moment.
ETH/USD currently stands at $202, 7% down for the last 24 hours with trading volume of $3.34b
Break and hold below $190-$195 would mean we’re looking at $140-$150 short-term. On the upside traders will need to hold $200 then push above September 2017 low of $220 (possible even $217).
XRP dropped from $0.30 to $0.287 on Friday morning before recovering to $0.294 later in the day. It was trading mostly in range during Saturday, but the sharp decline in the cryptomarket forced it to $0.271, right above the $0.27 support line
Ripple CEO Brad Garlinghouse said this week that there was no point in replacing fiat currencies with cryptos. Regular money does its job quite alright, he added. In order to contest this, point the speed and usability digital money must get much more effective, and while cryptocurrency can function well for overseas transactions, it is still not that useful for everyday payments.
XRP/USD saw a slight recovery on Sunday morning and the pair now sits at $0.285, 1.7% down since yesterday and ten times more for the week.
Targets remain the same – breach and hold $0.30 then $0.34. On the other hand, if $0.27 is broken, the downtrend will probably continue to $0.20.