This past week was a tough one for the cryptocurrency market. In the past 7 days, the crypto market lost nearly USD 50 Billion. Bitcoin dominance is getting weaker and currently stands at 63%, which can be a sign that Altcoins are trying to break loose from following Bitcoin Prices, like with the events of today. In this article, we’re going to assess what happened so far with the prices of Bitcoin and try to highlight important areas of entry/exit.
Bitcoin Price Prediction – Still in Consolidation mode?
In a previous article, we mentioned how Bitcoin prices entered a consolidation state, where prices were moving between USD 31,500 and USD 38,000. When the event of the Double-Spend happened, prices were shattered and decreased all the way to just below USD 29,000 but quickly recovered back above the support price.
Unfortunately, bad news usually is stronger than good news, and have a lasting effect on the markets, which are looking for any good news to lift prices back up. Today, we witnessed yet another fakeout formation to the support area of USD 31,500 with a potential further decrease in prices.
What’s needed to lift prices back UP?
Currently, we are lacking fundamentals to net the effect of the price adjustments that are happening. A drop of 15-20% is normal when we zoom out and look at the bigger picture of the extended increase from USD 3,000 to USD 40,000. BUT, we can’t ignore the short-term downtrend that’s currently in formation. Prices fell below the 200-Day moving average signaling a change in the market sentiment. (figure 2, thick red line).
Zooming out, we might wonder if the current overall formation in prices is signaling a further price adjustment, and we might go back in the 20K territories.
The Cryptocurrency market as a whole
In the past 7 days, most cryptocurrencies were in the red, with Bitcoin losing around 10% since last week. Speaking of the weaker Bitcoin Dominance earlier, we notice that on the other hand, and with the same timeframe, smaller coins managed to make significant gains like Uniswap UNI +78% and Aave AAVE +51%.
1- Bitcoin (BTC) : – 10.54 %
2- Ether (ETH) : – 2.92 %
3- Tether (USDT) : 0 %
4- Polkadot (DOT) : – 6.46 %
5- Ripple (XRP) : – 12.37 %
6- Cardano (ADA) : – 10.57 %
7- Chainlink (LINK) : + 3.67 %
8- Litecoin (LTC): – 14.01 %
9- Bitcoin Cash (BCH) : – 22.74 %
10- Binance Coin (BNB): – 2.55 %
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Rudy Fares
