Bitcoin, Ethereum, Ripple Prices Slump; Market Valuation Crashes
Bitcoin, Bitcoin Cash, Ethereum, Ripple: Prices, Charts and Analysis
- Cryptocurrency market capitalization has halved in one month.
- Support levels increasingly difficult to identify.
Cryptocurrency Market Set for Fresh Multi-Month Lows
The cryptocurrency market has lost 50% of its value in the last month as the steady grind lower continues, leaving technical support levels difficult to find. The market cap is expected to dip below $100 billion shortly, down from a peak around $830 billion in January this year, a drop of 87.4% in less than one year. Turnover remains low which suggests that buyers are becoming increasingly sidelined as valuations slump.
A report yesterday that blockchain investment firm Pantera Capital, one of the largest institutional owners of cryptocurrencies, warned that about 25% of the projects its ICO fund invested in may violate SEC regulations, leading to refunds for their clients.
Bitcoin looks set to fall below $3,000 in the short-term with the $2,970 September 15, 2017 swing-low the next target. Below here, horizontal support at $1,760 off the July 18 low comes into play in the longer-term.
Bitcoin Daily Price Chart (July 2017 - December 14, 2018)
Investors remain net-long cryptocurrencies but recent changes give us a mixed trading bias – for example the number of traders net-long Bitcoin has been trimmed back from last week.
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What’s your opinion on the latest cryptocurrency sell-off? Share your thoughts and ideas with us using the comments section at the end of the article or you can contact me on Twitter @nickcawley1 or via email at firstname.lastname@example.org.
--- Written by Nick Cawley, Analyst.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.