February began with a lot of selling and major dips across all cryptocurrencies. After a week prices started to go up slow and steady. Since then all major cryptocurrencies had an upward momentum. Last few days we saw that they struggle to keep this momentum and another round of selling has taken place.
Top 10 cryptocurrencies by market capitalization have almost identical graphs and price movement with small exceptions. However the price volatility tells us that there is excess selling right now. The price movement does not correlate to the technology improvements and the increasing user activity.
Few days ago GDAX and Coinbase implemented Segregated Witness (SegWit) to their networks which is a big solution for Bitcoin transaction prices and a big step forward. With the Lightning Network, privacy solutions like Bulletproofs and other fundamental developments coming up it will be interesting to see how they will influence the whole market.
Bitcoin has fallen below the 10 000$ mark. It had very strong support and was the last of the major cryptocurrencies to dip. For this week, Bitcoin peaked at just under 12 000$. At the lowest point it hovered just above the 9.500$ mark but this proved to be a critical support level for Bitcoin. It shows that Bitcoin
After that there was an encouraging bounce, but today Bitcoin went through the 9 500$ mark and dipped to just above 9 400$. The cryptocurrency is seeing great support at this price point and is currently holding its own. Going up Bitcoin needs to break key support levels at the 10 000$ and 11 000$. At 11 000$ will be the real test and the strongest resistance for Bitcoin.
The road up will be volatile as always with the same dips happening. Most likely, after Bitcoin breaks above the 10 000$ mark, strong support will emerge to strengthen the price above this mark. If the price falls below this mark again, the market will become bearish on Bitcoin.
Earlier this year, Bitcoin’s dominance index reached an all-time low at around 32%. This index measures Bitcoin’s market cap to the overall market cap of cryptocurrencies. On the way to 11 500$, this dominance index increased again to 39%. Bitcoin did perform better than Ethereum last weeks.
Ethereum has struggled to stay above 900$. Currently at this price point is the most important action and the strongest resistance level for Ethereum. Again we expect a volatile road to the 1000$ mark with other rounds of selling maybe dipping again to the 800$ mark or below.
Last week Ethereum broke below the 800$ mark with key support emerging to quickly take Ethereum’s price above the water. We will keep our eyes on the action around the 900$ mark as it will be one of the key indicators on where the price will go after. Never the less, Bitcoin and Ethereum volumes are huge with a lot of trading taking place.
Ripple continues to sign new partners to its xRapid and xCurrent networks. These advancements however do not reflect on Ripple’s token at all. As of writing this guide, Ripple’s price is over 0.92$. The price was starting to dip below the 0.90$ mark, but just as the price started to fall huge volumes came in to float the price and to stabilize it above 0.92$.
Last week Ripple was doing great with a price between 1.10$ and 1.17$ but this new rounds of selling hit Ripple as hard as the other cryptocurrencies. We should expect Ripple to return to the strong levels above the 1$ mark. The greatest resistance will be faced above 1.20$ with huge selling orders being placed there. During the volatility Ripple will most likely move between the 0.90$ and 1.10$ levels before it can break out upwards.
Few words about altcoin price
Bitcoin Cash (BCH) also fell to the mass selling. Last week it had highs of above 1 500$ but fell to 1100$ last few days. As of writing this article the price is just above the 1 100$ mark and it looks like Bitcoin Cash has big support on this current level. The price in the next few days will probably play around this price point before it can break out with a lot of resistance being formed at the 1 400$ level. If the support fails we may see big dips below the 900$ mark.
Stellar Lumens (XLM) is currently outperforming Cardano (ADA). Cardano seems to be stuck in a deadlock of being oversold. The road going down is slippery with support levels thinning. Stellar on the other side is doing fairly good. In this round of selling XLM was hit like the rest of the major cryptocurrencies. However Stellar seems to have a stronger support level than Cardano. Bulls will most likely try to hold the 0.30$-0.35$ price range. If they manage to do so we can expect a breakout above with the next strong resistance level will be faced at just above 0.40$. If they do break it we may see Stellar with a quick rally to around 0.49$.
The last cryptocurrency i am going to talk about is Litecoin (LTC). Litecoin did have a stronger support than the other major cryptocurrencies. Litecoin’s price followed the selling action but was the quickest to recover alongside IOTA. Big volumes of support have emerged to quickly stabilize Litecoin above 210$. If Litecoin breaks the 200$ mark we may see further sinking to the 160$-170$ mark. However the cryptocurrency looks the strongest from the leaders and if it breaks the above resistance we may see Litecoin rise to 250$ before the other leaders.
- Security Token Offering (STO) Guide: Everything you need to know about STOs - Feb 28, 2019
- Coinbase Pro is adding Ripple (XRP) support for trading - Feb 27, 2019
- Top ICOs of 2018: Initial Coin Offerings that beat the Crypto Bear’s market - Feb 26, 2019
- Ethereum hard forks Constantinople and St. Petersburg scheduled by the end of the week - Feb 25, 2019
- Ethereum founder and CEO, Vitalik Buterin revealed his non-Ether holdings and revenue sources - Feb 22, 2019
Categories:Cryptocurrency Price Analysis