After two days of substantial increases, today sales are back in the cryptocurrency market.
As always, after an upward swing, it is normal that there is a downturn: the current retracement should not worry the operators, however, they must still keep an eye on the general context of the crypto market.
The first 30 cryptocurrencies per capitalization that we find on Coinmarketcap are all in red: the average decline is more than 6%. The only one that stands out is Zcash (ZEC) which is benefiting from yesterday’s listing on the Coinbase Pro exchange.
The total capitalization of the crypto market is falling again, in line with the decreases of more than 6%: from 140 billion yesterday, today we are just over 130 billion.
But, as we said, the current decline should not worry much: when there are rebounds of 20% in 2 days – Tron (TRX) in 3 days has risen even 50% – observing 6% movements can have an effect and bring back some fear. In reality, what operators should worry about is whether prices are back below support levels.
Following this reasoning, the support level would be 4000 dollars which, in addition to being a technical level, is above all also a psychological level. The bitcoin level to be monitored is $3600, reached last Tuesday.
In the case of a further sinking during the weekend under 4000 dollars and then 3600, this would definitely trigger sales, it would obviously be a very negative signal that would extend to test the psychological threshold of 3000 dollars.
Ethereum, after a bounce just over 120 dollars, is now at 110 dollars. It is not a worrying downturn because the psychological support level is 100 dollars which for now has held strong.
From the highs of mid-January ETH lost 90% and in such a negative context it is good to continue to be cautious and not to anticipate. Of course, these are levels that stimulate buying at discounted prices, but the general context of recent months does not support large purchases: the volumes remain interesting but it is a signal that we will understand better in the coming weeks.