Over the last seven days, most cryptocurrencies lost significant fractions of their worth. Many would conclude that the current seven-day session is one of the most bearish. The image below sheds more light on the extent of the bearish dominance.
The figure above shows an almost all-red situation. This is the current state of the crypto market. There are very few green and hard to identify as the massive hue presence outshine the positive.
This massive decrease across the industry is one that many would love to forget. However, the global cryptocurrency market is a stark indication of what happened. It was worth more than $1 trillion at the start of the week.
It retraced to a low of $786 billion at the peak of the bearish dominance. The sector is currently worth $831 billion. The distance between both the opening price and the current worth of the market is almost 20%.
With the most recent state of the market, it is hard to predict how some cryptocurrencies will perform next week. Let’s see how some assets in the top 10o may perform.
Top Five Cryptocurrencies to Watch
The image above pointed out that the apex coin is down by more than 20%. Although it started the previous week with minimal losses, the deficits deepened as the session progressed. On Tuesday, it dipped to one of it lowest marks since the year’s beginning.
It flipped the $18k barrier and dipped to a low of $17,114. It rebounded but ended the period with considerable losses. A similar event took place the next as BTC registered the current low of the year.
It dropped to a low of $15,632 and lower on some exchanges. This massive price decrease left the asset under consideration with losse exceeding 14%. That was the biggest loss in 24 hours the apex coin suffered during the week.
Thursday came with relief for bitcoin as it gained more than 10%. The increases were not enough to see the largest cryptocurrency by market cap erase the losses it incurred. The last three days of the week were marked with little downtrends.
However, a look at the indicators showed that several events took place during the period under consideration. For example, the Moving Average Convergence Divergence indicates that BTC had a bearish divergence on Tuesday.
It lost its 50-day Moving Average due to the downtrend. Trading action on Wednesday also saw the cryptocurrency become oversold. All this reading raises concerns of another retracement over the next six days.
It is important that the Relative Strength Index is at 33 which shows that it recovered. However, it is dropping. One of the two scenarios may play out. The decrease may continue through the first two days of the week and BTC becomes oversold again before a final push or its rebounds.
In either scenario, the $16k support is the key level to watch and any uptrends from this mark would target the $18 resistance.
Like most cryptocurrencies, the largest altcoin is also down by more than 25%. A look at the daily chart sheds more light on what transpired during the intraweeks session. It kicked off with little or no notable change in prices.
It took a turn for the worst the next day as it tested the $1,200 support for the first time in a long while. It rebounded but ended the day with losses of almost 15%. The downtrend continued into the next as it lost another key level.
It flipped the $1,200 barrier and hit a low of $1,070. It slightly recovered but failed to have any impact on the losses it incurred already. As a result, it closed with losses of more than 17%. It had its biggest gain on the fourth day of the week.
It gained momentum due to a positive fundamental and was fully bullish throughout the intraday session. It ended the day with gains exceeding 17%, erasing the previous day’s losses. However, the bears took over the next day.
Like most cryptocurrencies in the top 10, ETH had a bearish divergence on Tuesday. Two weeks ago, the asset made progress and attempted flipping its 200-day MA. However, it failed as it lost momentum.
It also ripped through the 50-day MA during the downtrend. RSI is currently at 40 after it fell below on Wednesday. A closer look at the indicator shows that the metric is dipping. This may be a source of concern going into the new week.
If selling pressure continues to mount, ether may become oversold on Tuesday or the third of the week. We may see the asset under consideration flip the $1,000 support. A change in trajectory may guarantee a retest of the $1,400 resistance.
Polkadot, like most cryptocurrencies, had one of its most bearish periods. The last seven days were some of the days traders would love to forget. However, it is almost impossible to do so considering the impact it had on the coin.
On a weekly scale, the asset under consideration is down by more than 15%. Like most cryptocurrencies to watch, it had one of its biggest losses on Tuesday as it dipped to a low of $5.8. It ended the session with losses exceeding 11%.
The next day was the worst as DOT retraced a low of $5.33. This is the first time since the beginning of 2022 it is dipping to this level. However, the bulls had their share of dominance. For example, on Monday, the altcoin gained more than 4%.
On Thursday, it had another green candle. It surged from $5.31 to a close at $5.96 after it peaked at $6.17. The intraday session ended with the cryptocurrency seeing a price change of more than 10%.
The last three days of the week were marked with little trading volumes. A look at the Relative Strength Index sheds more light on how massive the selling pressure was. It dipped from 63 to 35 in less than 48 hours.
The Moving Average Convergence Divergence pointed to the start of the downtrend as it had a bearish divergence on Tuesday. It also lost its 50-day MA in response to the massive downtrends it experienced.
With the new week in focus, we may more struggle for dominance over the next six days. If market conditions remain as they are now, DOT may resume its uptrend. This may see it surge above $6.
It is also important to bear in mind that the $5.80 support is the most vital mark at this time. A flip may guarantee a retest of the $5.50 barrier.
In the weekly chart, Monero lost more than 17%. There was very little impact on prices on Monday as we saw a doji representing the session. It took a turn for the worst the next day as it dipped to a level it hasn’t in a while.
It dipped to a low of $130 from a high of $157. It recovered, but not fully, and closed with losses of more than 10%. It had a deeper low the next day as it dropped to a low of $115. Like the previous day’s event, it rebounded but did not fully erase the losses.
As a result, the session ended with losses of more than 13%. This was the highest loss the coin had in more than three months. It had its biggest surge for the week on Thursday as it surged to a high of $134 but retraced.
However, it ended the session with gains of more than 11%. It had another massive decrease on Friday as it saw a low of $120 but recovered and closed with losses of almost 4%. The massive decreases had a negative impact on indicators.
For example, RSI dipped to below 30 on Wednesday but closed the week in the safe zone. A look at the Moving Average Convergence Divergence showed that the asset under consideration had a bearish convergence at the start of the week.
Additionally, it lost its bid at reclaiming its 200-day MA. It also retraced below its 50-day MA. Looking at these metrics, it is hard to predict how prices will perform over the next six days.
However, one of the key levels to watch is the $120 barrier. It is important to defend this mark as failure may result in a dip to $110.
Trust Wallet Token was the top gainer over the last seven days. It ended the period with gains of more than 63%. It is one of the few cryptocurrencies that showed notable resistance to the bearish sentiment that ravaged the crypto market.
An indication of this was that it failed to record any significant losses or gains on Tuesday. However, it dipped to a low of $1. It had its biggest drop the next as it flipped the $1 support and closed with losses exceeding of more than 9%.
The last four days of the week saw the asset record massive gains. As a result, it was oversold and failed to return below 70 at the end of the week. There are scares of retracements due to this situation.
Currently holding on to the $2 support, we may see the asset dip as low $1.5 or lower before an uptrend. Nonetheless, it may defy the odds and retest the $3 resistance within the next three days.
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