Crypto market today saw sharp downside action as all major cryptocurrencies lost nearly 1.5% to 2% value resulting in a total market worth going down by $2billion. Bitcoin and all other major legacy crypto coins today saw sharp downside move as they declined below a major support level that prevented downside action so far this year. Winter is coming to crypto market and no one can really predict how long it will last this time as even news that would normally give the market a solid boost failed to create any sort of lasting or short term impact on price action. Two such major news that failed to generate momentum are:
- Wyoming legalizing virtual money as a payment option.
- Solicitation notice issues by U.S. SEC which was viewed by many analysts as a signal for possible approval of CBOE’s Bitcoin ETF request.
Key Psychological levels Likely To Be Breached Soon
Market views the current scenario in which crypto assets failed to react positively to news that was highly anticipated by traders as an alarming issue. However, the real grim fact is that winter has already begun for the crypto market. And this is clearly visible in Bitcoin, the progenitor of cryptocurrencies which is currently experiencing its longest ever bearish price momentum since its debut 10-years ago. Bitcoin is currently on its 60 th week of bearish price action having begun its decline on the third week of December 2017. Bitcoin is now trading well near 2018 lows and a breach below said level will likely open doors for further declines which could go as low as $1200 to $1000 before achieving any sense of stability. Aside from Bitcoin, Ethereum is also suffering sharp declines. Ethereum was one of the oldest widely adapted cryptocurrencies and is among the first to gain popularity following Bitcoin.
As such, the recent string of events namely – security vulnerabilities which have been discovered back to back just ahead of Constantinople network upgrade is raising lots of red flags and questions in market adding bearish pressure to market which has already suffered serious loss. Both BTC & ETH are trading at critical price levels today. As of writing this article, BTCUSD pair is trading at $3389.6 down by 1.5% having fallen below $3400 handle, while ETHUSD pair fell below $105 handle and is trading at $104.25 down by 2.10% having tested an intra-day low of $101.25 earlier in the day. Given clear lack of fundamental support for crypto bulls in the current market, it is merely a matter of days before key psychological price levels are breached and price moves towards new all-time lows following the crypto bubble.
This article was originally posted on FX Empire
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