Until today all red could be seen on all cryptocurrencies, as the lows from the previous days have returned. The total cryptocurrency market cap crumbled well below 300$ billion, as right now the market cap is recovering from under 250$ billion to 265$ as of writing this cryptocurrency price analysis. The valuation is down 100$ billion over the past week. The cryptocurrency leaders’ prices experienced a clear downtrend as it can be seen on the image below.
With an exception of a select few cryptocurrencies that were affected by pump and dumps, most of them have moved in a similar pattern. As always, most cryptocurrency prices in fiat currencies are directly related to their price in Ether or Bitcoin, so when they fall in fiat currencies, all altcoins follow suit. The bearish trend continued down the charts, as a small number of cryptocurrencies rised against the value of the US dollar.
Today, April 2, 2018 the cryptocurrency markets are seeing a slight upward movement after most of the leading cryptocurrencies reached record lows for the past few months. Though to put that in context, these lows were considered impressive peaks last summer. From all of this, it looks like the markets will need more time to completely recover.
News that influenced cryptocurrency prices
This week’s market slump can be attributed to some negative news that came out. Marketing automation platform Mailchimp will shut down all accounts related to cryptocurrencies including Initial Coin Offering, exchanges, news, books, events and announcements.
The other big news was that Twitter banned cryptocurrency-related advertising. The social media giant folled other giants like Facebook and Google who did the same earlier this year. The ban is covering token sales, cryptocurrency exchanges, wallet services and Initial Coin Offerings (ICO). The policy is being introduced over the next 25 days. User safety is the number one reason behind these bans. You can read more about it here.
There was positive news as well. Poland is opening up towards cryptocurrency and Blockchain technology. Poland’s largest bank is planning to implement a Blockchain storage system. From the South Korean capital Seoul made an announcement that they plan to launch their own cryptocurrency and thus to create a better environment for cryptocurrencies and Blockchain technology. The positive news are just another step towards mass adoption.
Cryptocurrency price analysis and volumes
The lows didn’t last long, as immediate support came. The low prices are a great entry point for new investors, but are tempting for old investors as well. Right after the lows, most cryptocurrency projects recorded an increase in volume. These increases ranged from 10% to 100%, depending on which volume you are looking. Both fiat currency and cryptocurrency volumes increased as the low prices were too tempting for investors.
Let’s see if we can find good buying opportunities. We have missed some of them, but learning to find opportunities and pattern recognition will be helpful for future trades.
Bitcoin is trading for just above 7000$ again, as the cryptocurrency is recovering from a beating. Yesterday Bitcoin’s price plummeted again to 6500$ for a short time but quickly recovered to 6850$ in 30 minutes posting a 5% increase. Strong support emerged to stop the downtrend as Bitcoin looks like it is starting to stabilize around 7000$. Bitcoin retains its high dominance index staying steady at 45.4%. The volumes on Bitcoin futures are intensifying as well with a lot of action coming soon.
Dips are always great trading opportunities. Traders who participated in the recovery managed to make 5% profit in just 30 minutes. The ones who waited 2-3 hours more could sell their Bitcoin for more than 7000$ which is more than 8% profit in few hours.
An interesting thing to note is that after reaching last week’s lows, the price of Bitcoin spiked to 12,000$-13,000$ in some regions like South Korea and Hong Kong. These regions have the leading trading volume for cryptocurrencies and the demand is far bigger. Most of the times, the prices in these Asian countries are automatically higher with 5% to 15% than the rest of the world.
Traders should keep a close eye on the Relative Strength Index (RSI). It is entering the oversold territory, which is a good buying opportunity. A bigger dip is possible, but we will have to wait and see. The 6000$ mark for Bitcoin is currently its strongest support level.
Ethereum is also starting to look green, trading at around 395$, up from a 24-hour low of 365$. Again, buying during the dip is a great investment opportunity, as traders who bought during the dip can make quick 8% profit if they sell now or sold the hours after. Like Bitcoin, Ethereum also recovered in matter of minutes.
Right after the dip, Ethereum recorded a 5% increase, stabilizing the price at around 400$. The bulls are failing in their efforts, which is showing complete dominance by the bears. This has resulted in the Relative Strength Index plunging deeper in being oversold. Like Bitcoin, this could be a great buying opportunity for investors to get some Ether at the lows. Panic selling can occur so it is possible to place an order far bellow the selling price and it can be completed by the morning.
Stellar Lumens (XLM) was one of the winners and showed the most consistent growth. The currency posted an increased volume of around 100% during the dips of most cryptocurrencies. Stellar is continuing to increase its Ether and Bitcoin price, increasing by more than 30% for the last week. The currency is trading at around 0.21$ which may seem little comparing to its previous lows, but the fiat currency price is mainly dependent on Ethereum’s and Bitcoin’s prices.
Tron was recently ranked 10th by total market cap and will be mentioned in the winners and losers tab. It was the only top 25 coin to return a single-day gain. Tron was rising for more than a week and trippled in Ethereum price and more than doubled in Bitcoin price. The cryptocurreny raised its price to 0.05$ (high compared to the current Ethereum and Bitcoin price) and reached a market cap of more than 3.2$ billion. As i said in my last Cryptocurrency Price Analysis Tron was in a great spot for trading, especialy on Binance where it is the bigest cryptocurrency by trading volume.
EOS is staying strong from a while now and continues to exhibit strength. The cryptocurrency is trading close to the 20-day EMA which could signal an upcoming uptrend. Still EOS is the 6th cryptocurrency by market capitalization and is staying strong for now.
From the top 10, NEO was the one showing the least growth. NEO is free falling from 140$ and is currently trading at 48$. It dipped at 45$ but as the others recovered, so did NEO. It recovered to 48$ with an increased volume of 20%. However, NEO is still maintaining a reasonable Ether price 20% lower than its recent high but it is on a steady downtrend from a week.
Tron is mentioned here also, because after a whole week of pumps, it was innevitable to be dumped. Tron free falled by more than 30% from the highs it reached both in cryptocurrency and fiat currency prises. The coin has proved many times to be sensitive to pump and dumps, also it feels somewhat controled and easily manipulated. Tron won our trophy for Shitcoin of the Week, click the article to view a different viewpoint and if you disagree feel free to comment in the comment section. I still think it is a great long term hold and can be great for short term trading, but you have to be prepared to lose a lot if you want to win a lot.
Ripple and IOTA are decending by fiat currency prices, but are staying stable on the same Ethereum and Bitcoin price. The currencies look stable for now, but i smell an upcoming rally. My observations are that when cryptocurrencies are looking stable and controlled, most of the times a big rally is coming. Tron was looking the same as IOTA and Ripple look, before it blew up.
Optimistic for the long term
Despite of all, I am still optimistic about cryptocurrencies in general. The latest corrections that we talked about in the recent cryptocurrency price analysis are nothing new to experienced investors or cryptocurrency enthusiasts. The history is repeating itself, as Bitcoin’s latest corrections were identical pattern-wise to the past. Since 2013 to this day, Bitcoin’s price is following a similar pattern, but reaching new highs every year. Pattern recognition is important for investing, because if similar events unfold this year, there will be many more opportunities in this exciting market.
The recent corrections were brutal for sure, but were not the worst corrections Bitcoin has ever witnessed. In the beginning Bitcoin had experienced two 80% corrections and a 95% one. Compared to this, Bitcoin is still looking great and promising for 2018.
Institutional investors, hedge funds and investment firms are also looking into the crypto markets. They are exploring ways to enter the market and these market slumps are one of the greatest ways to enter. The volatility in the crypto markets is a huge opportunity and once institutional money start coming in we may witness record highs.
- 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
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