The cryptocurrency markets remain under siege, with Bitcoin attempting to hold the $6000 level in quiet, recent action. The altcoin space has been hit hard as well, and many investors appear to be leaving altcoins and going with bigger players in the industry.
“Cryptocurrency prices traded lower Monday, beginning the week at or around Sunday’s closing levels.”
“Bitcoin, the worlds No. 1 digital currency is trading marginally lower at $6,473.08, down 0.4% since Sunday at 5 p.m. Eastern Time on the Kraken exchange.”
“After a volatile few sessions, bitcoin BTCUSD, -3.35% spent the weekend inside $6,300 – $6,600 with weekend trading volume at its lowest level since June 9, according to data from the Bitfiniex exchange.”
“Ricky Li, CEO of cryptocurrency trading and asset management firm Altonomy, said volumes have been particularly light in the altcoin market, the market for smaller coins other than bitcoin. “We are seeing a new low in volumes in the altcoin market this year,” said Li. “The top few [cryptocurrencies by market value] are still the safest space and we are seeing rotation out of them into bitcoin.”
Investors have not had much to cheer about in the crypto space currently, and this movement of capital from altcoins to larger coins is indicative of some degree of risk aversion.
On the plus side, however, is the notion that if cryptos were in fact in a bubble that bubble has burst. This could potentially lead to a longer, more sustainable run higher for prices.
Bitcoin: Bitcoin has failed to see any follow-through to the recent rally once again. After spending much of the last week around the 6.5k level, the sellers have again taken control, driving prices to $6200 and change. The 6k level seems to be a key price level that the bulls must hold in order to avoid a larger sell-off. Without any fresh, bullish catalysts, however, the market remains vulnerable to further downside.
Bitcoin Cash: This crypto saw a sharp drop from around the $465 level to around $424. Like other currencies, Bitcoin Cash is not seeing much follow-through on any upside and remains vulnerable to further downside. With overll market cap in the crypto space trying to hold the $200 billion level, this coin could come under pressure as investors rotate into larger coins.
Ethereum: This crypto has moved primarily from $210 to $225 in lackluster action. The larger time frames show a strong downtrend, and the market may once again test the $200 level. If that level does not hold, prices could head sharply lower while probing for a bottom.
Ethereum Classic: This crypto has been unable to hold any rallies, and has now fallen from over $40 to around $10 over the last year. This currency is also in a form downtrend, and a break below the $10 level could potentially see a quick move down to $8 before finding bargain hunters. Like other currencies, a lack of fresh bullish news has taken a toll on the currency.
Litecoin: This crypto has not had much to get excited about in recent weeks, and the market has done little in terms of attempted rallies. The currency is now just trying to hold onto the $50 level, and a breakdown below that could see the currency looking for fresh, new lows. Without any significant areas of support under the $48-$50 level, this coin could potentially see a sharp decline lower before finding bargain hunters.
Ripple: This crypto has exhibited little volatility, and has not given buyers much to be excited about. The currency has traded in a range of just a few cents over the last week, and has not seen any attempted rallies of significance. This currency could potentially see prices fall to a dime or lower before possibly staging a rebound.