The past week saw a lot of movement in the- crypto- market as Ripple, capitalizing on its financial institution"s flexibility in terms of acceptance continued to make headlines overhauling all other cryptocurrencies every now and then to secure a bronze tier and the most powerful cryptocurrencies — Bitcoin and Ethereum, including others, experienced a steep- double-digit fall.-
The entire market recorded a drop of more than $63 billion as the price of BTC- declined to $3,456 on fiat-to-cryptocurrency exchanges like Coinbase and Kraken.
While,- Bitcoin (BTC),- the currency which rules the roost, dropped by 12 percent (from $4.300 to $3,800) setting a new yearly low, Ethereum (ETH) fall to $98. However, it’s currently exhibiting a daily volume which outperforms Ripple (XRP) and Bitcoin Cash (BCH) combined at $2.2 billion.
Charting the performances- —- Bitcoin- at $3,456 and Ethereum at $98,- reveals an oscillator that has reached a low extreme. Though the recovery has been rough for all the digital assets, BTC recovered comparatively faster from a low of- $3,400 to a recovered high of $3,700 within few hours.
Initially, the price of BTC declined to $4,000, in the wake of which a lot of investors predicted a possibility of further fall below the mark of $4,000 given that at $4,000, BTC was experiencing a drop which is 79% low from its all-time high.
As soon as the BTC’s expected drop came into sight, investors and traders got a comfort zone to find a short-term bottom in the BTC’s price trend.
To exemplify, here’s what Alex Krüger, a cryptocurrency trader and economist, said -
“Think that was it. Impossible to know if a bottom is a short or long-term bottom. Possible to sense once a major bottom may be in by looking at high-frequency price bars and volume i.e. when the elastic is ready to snap back. If it swings 15-30% off the lows, that’s a major bottom in % terms.”
Meanwhile, Hsaka, a technical analyst, was recorded to be bent towards the opinion that it’s too early to call a short-term bottom for Ethereum.- He took into consideration the steeper fall Ethereum underwent in comparison to BTC.
“Really stumped here. That wick could be chalked up to cascading liquidations and thin books. Looking for- a HL- on any retrace to confirm a daily bottom,”- said Hsaka.