Cryptocurrencies continue to struggle, with altcoin king Bitcoin trying to hold above the 6k level. Financial markets have been focused on recent developments in Turkey, where the nation;s currency is under siege. The Lira has been hit hard in recent days, and could potentially see even more declines in the days and weeks ahead. The currency crisis has been affecting stocks and other markets, and there is concern over a much wider contagion risk.
Investors have thus far shown little interest in cryptos or even gold during the recent market turmoil, and the dollar has been bid higher against numerous emerging market currencies. Although this could change, it does provide an indication that perhaps mainstream investors are not yet ready to consider the cryptocurrencies a go-to asset class during times of market upheaval.
Bitcoin investors may be seeing some degree of relief, however, as the currency bounces back from a recent test of the 6k level. A recent article from marketwatch.com discussed Bitcoin’s current position. The article stated:
“The one bright spot for owners of bitcoin is that it continues to outperform other digital currencies, known collectively as altcoins. According to data from CoinMarketCap, bitcoin now makes up 52.2% of the total cryptocurrency market, its biggest share since Dec. 18 when the price of bitcoin was above $18,000. A lot of new projects and ICOs (initial coin offerings) are dropping off and we are seeing a lot of those funds flow back into the established cryptocurrencies like bitcoin,” said Mato Greenspan, senior market analyst at eToro.”
Bitcoin: Bitcoin has failed to see any follow-through to the recent rally. Prices have not only been unable to mount more upside, but have also come under significant selling pressure again. The currency has lost over 1k in value in recent days, and is still vulnerable to another breakdown. Investors will likely continue to watch the 6k level, and a breakdown below could signal another sharp leg lower.
Bitcoin Cash: This crypto has been primarily range-bound again this week, and seems comfortable around the $560-$600 level. The currency has not seen the ups and downs that have been seen in Bitcoin, and the larger time frames still appear to be pointing to lower prices.
Ethereum: This crypto saw a sharp decline in recent days from around the $330 area to under the $300 level. The currency is trying to find some solid footing in the current region, but appears to be quite fragile. The $300 level would seem to be key, and a breakdown below could send the currency sharply lower. Without any previous major support levels below $300, there is really no telling just how low it may need to go before finding more buyers.
Ethereum Classic: This crypto has been unable to hold the $14 level, and a test of the $12 area looks to be in store. If $12 does not hold, the currency could see a move down to $10. A break below that level could set the stage for the currency to really test the depths in search of buyers.
Litecoin: This crypto has not had much to get excited about in recent weeks, and the market has done little in terms of movement. The currency is now struggling to maintain trade above the $60 level, and a downtrend is sstill in place that could lead to even lower prices before a long-term bottom is found.
Ripple: This crypto has exhibited little volatility, and has not given buyers much to be excited about. The bigger charts still point lower, and the currency could see a price of a dime or even less before finding a bottom.
With increasing currency market volatility and numerous other potential powder kegs that could ignite financial markets into a tailspin, the crypto space could see some interesting price action in the months ahead. Further declines in the space would seem to indicate that investors do not yet view the currencies as a reliable store of value. On the other hand, if global markets do come under further pressure and cryptos are able to rally, it could be highly encouraging for the bulls and may potentially help these currencies form a base from which to build off of.