Digital asset prices dropped in value on Monday after the last few weeks of cryptocurrency market consolidation and stability. Around 8:10 a.m. EDT on Oct. 29, the top 10 digital currency markets saw percentage losses of between 2-5%. Since our last markets update two days ago, the entire crypto-economy has lost $5.6 billion in value.
Top Cryptocurrency Markets Dip While Traders Play the Range
After the tight trading range over the last few weeks, many people joked about cryptocurrency prices remaining stable indefinitely. Of course, most crypto enthusiasts know better and on Monday, after a dull trading weekend, the majority of digital asset markets saw price declines across the board. Bitcoin core (BTC) prices saw a low of $6,208 and bitcoin cash spot prices dipped to $414. Even though markets are now in the red, trading volumes have increased immensely since our last report. At the time, $8.6 billion worth of 24-hour cryptocurrency global trade volume was recorded but today the worldwide trade volume touched around $12 billion.
Bitcoin core (BTC) is currently trading for $6,344 per coin and has seen a loss of around 2% over the last 24 hours. Following behind is ethereum (ETH), as markets have seen a 3.5% loss during the morning trading sessions. One ETH is being swapped for $197 at the time of publication. The third largest market capitalization held by ripple (XRP) lost 3.5% and each token is trading for $0.44. The morning dip has erased 4.7% off the overall eos (EOS) capitalization and each token is trading for $5.14. On Oct. 29, at 12:15 p.m., the market valuation of all 2,000+ cryptocurrencies is around $206 billion. Just before the dip, dwindling cryptocurrency trade volumes started to reverse and now many traders are scrambling to find new positions.
Bitcoin Cash Market Action
Bitcoin cash (BCH) is currently trading for $416 per coin and the cryptocurrency has lost 4.7% since the initial plunge. The BCH market valuation is $7.2 billion and there’s been $298 million worth of BCH trades over the last 24 hours.
The top five exchanges trading the most BCH this Monday are Lbank, Hitbtc, Bithumb, Okex, and Digifinex. BTC trades cover 40% of today’s BCH pairs, followed by USDT (26%), KRW (13.4%), ETH (10.2%), and USD (5.5%). BCH is currently the seventh most traded cryptocurrency out of all the virtual currency markets.
BCH/USD Technical Indicators
Looking at the four-hour and daily charts shows traders have been ‘playing the range’ so to speak over the last couple of days, and even more so now. Bollinger bands are extremely tight and the long and short-term SMA trendlines have crossed. On the four-hour BCH/USD chart, the longer-term 200 SMA is now well above the short term 100 SMA. This shows the path of least resistance for BCH traders right now will be the downside.
The relative strength indicator (RSI) shows BCH is oversold right now (-21) and traders may see a reversal after all the scraps are bought. Right now on Bitstamp’s order book, there’s a huge sell wall that will keep bulls at bay until $430. Bulls have another obstacle around the $475 region if they plan on gathering momentum. On the backside, bears will see resistance at the current vantage point up until $350 where they will hit a bigger buy wall.
The Verdict: Traders On Edge Find New Positions Before the Next Significant Move
Overall, many traders have noticed that trade volumes have been relatively low and that there’s been anomalies and weird correlations between cryptocurrency markets and traditional equity markets. Then there’s been the peculiar action taking place with the various stablecoins over the last two weeks. Also, the decline in Japanese yen against cryptocurrency pairs and the rise of the Korean won has been a curious occurrence. The recent downturn has put traders on edge, and now on high alert, which makes a refreshing change from the tedium of the crypto-economy’s stability over the last few weeks.
Price articles and markets updates are intended for informational purposes only and should not to be considered as trading advice. Neither bitkonga.com nor the author is responsible for any losses or gains, as the ultimate decision to conduct a trade is made by the reader. Always remember that only those in possession of the private keys are in control of the “money.”
Source:: Jamie Redman
Author: Temitayo Olojede , firstname.lastname@example.org