Over the last few days, most cryptocurrencies recorded massive decreases in value. The global cryptocurrency market cap is also down by a huge margin in response.
The crypto market closed with valuations dropping by almost 10% due to devaluation across the market.
It opened the session at $1.27 trillion and peaked a little higher before the downtrend. The sector under consideration dipped to a low of $1.15 trillion. It failed to recover and closed at this valuation.
Some cryptocurrencies lost a significant fraction of their value during this period. One such is Stacks. It ended the previous seven-day period with losses of almost 18%.
The current week is no different as we notice slight downtrends across major crypto assets. Judging by the past 48 hours, let’s see how some assets will perform this week.
Top Three Cryptocurrencies to Watch
BTC/USD
Over the last seven days, the apex coin lost several support levels. One such is the $30k mark it regained a few days ago.
The period of consistent downtrend started on Wednesday when the top asset lost more than 5%. It kicked off trading above $30k and dipped to a low of $28,800, flipping the $30k and $29k barriers.
Bitcoin retested the $28k support the next time but failed to break it. It gave way on Friday and dropped to a low of $27,100. During the 48 hours, Bitcoin lost almost 6%.
This also reflected on the weekly outcome as it lost 9% on weekly scale. Due to these conditions, several indicators are bearish.
For example, the Moving Average Convergence Divergence displayed a bearish divergence last week. The Relative Strength Index also displayed a massive drop in buying volume.
At the time of writing, there are little to no improvements in these readings. This suggests more downtrends in the coming days. With indicators a little silent, we turn to previous price movements for answers. One of the key levels to watch is the $26k barrier.
A few days ago, bitcoin dipped as low as $26,800. If current trading conditions persist, we may expect a retest of this key support.
On the other hand, we may expect more attempts at key resistance. One such is the $30k barrier. Depending on prevailing market sentiment, BTC may flip this level within the next five days.
ETH/USD
Ethereum had a very similar performance to BTC. It lost several key levels over the last seven days. This was the growing trait among most cryptocurrencies at the time.
It kicked off with almost 3% deficit in price as it dipped to a low of $2,056. Although it tried erasing the losses, this was not enough as the top altcoin failed to surge to the week’s opening at $2,120. However, we noticed a lot of struggle for dominance between the bears and bulls as the candle representing Tuesday as long wicks sticking out.
The main highlight of the week happened on Wednesday as we observed one of the longest candles. It kicked of trading at $2,104 and dipped to a low of $1,924, crushing the $2k support. It also registered losses of more than 8% in the end.
A similar event took place on Friday as the ETH lost $1,900 and dropped to a low of $1,826, representing an almost 5% drop.
With major losses, Ether lost all of its accumulated gains as it dipped by more than 12%. This also reflected on indicators. short-term indicator like MACD displayed a bearish divergence, which also explained the massive downtrend that the coin saw.
RSI is also at a record low. After weeks of being close to 80. It is currently at 50. More pressure may result in tipping the balance
With a focus on the current week, it worth noting that the previous intraday session was not one of the best starts for the coin. Although not significant, the coin lost a fraction of its value. It also returned to its low a few hours ago which indicates a level of selling pressure.
If the pressure continues, ETH may lose $1,800. However, a change in market sentiment may guarantee an attempt at $1,900 and possibly, the $2k resistance.
