Bitcoin Could Extend Losses Towards USD 5,000
Yesterday, we discussed how bitcoin price struggled to hold the lower end of the range support near USD 6,300. BTC/USD declined sharply below the range support and traded below many crucial support such as USD 6,000, USD 5,800 and USD 5,600. Similarly, almost all major altcoins declined heavily, including ethereum, ripple, bitcoin cash, litecoin, EOS, NEO and ADA. The current (UTC 08:30 AM) technical structure suggests that bitcoin moved into a medium term downtrend below USD 6,000 and the current year decline could extend further if buyers fail to protect losses below USD 5,500 and USD 5,000.
Read more about the recent market crash here.
Total market capitalization
There was a sharp downside reaction after bitcoin price broke the USD 6,000 support. BTC/USD declined more than 10% and traded at a new 2018 low around USD 5,600. Later, the price started a short term recovery, but buyers are likely to struggle near the USD 5,750 and USD 5,800 resistance levels.
More importantly, the previous major support at USD 6,000 will most likely act as a strong hurdle for buyers in the near term. Therefore, an upside correction is likely to be limited unless buyers push the price back above USD 6,000.
Ethereum price traded below the USD 200 support and declined around 12%. ETH/USD traded close to the USD 170 level and it is currently consolidating losses.
An initial resistance on the upside is at USD 180, above which the price may perhaps test the USD 190 zone. The main resistance is near USD 195 - USD 200, which was a support earlier. On the downside, a break below USD 170 might push the price towards USD 155.
Bitcoin cash and ripple price
Bitcoin cash price tumbled more than 15% from the USD 500 swing high and traded close to the USD 400 support area. BCH/USD is currently consolidating near USD 420 with a bearish angle. On the upside, the price is likely to face a strong selling interest near the USD 440 - USD 450 zone. The main support is at USD 400, below which the price may possibly accelerate towards USD 360.
Ripple price fell sharply below the USD 0.500 support and traded close to the USD 0.420 support. XRP/USD recovered later and it is currently facing resistance near the USD 0.460 and USD 0.470 levels.
Other altcoins market today
Many small cap altcoins tumbled by around 15% recently, including RVN, IOST, HC, ARK, STRAT, AION, CMT, WTC, LRC, ELF, NEXO, MKR, PPT, ZIL, ETN and LISK.
To sum up, the recent collapse in bitcoin price below USD 6,000 might indicate that this year’s decline is not over yet. BTC/USD and major altcoins may perhaps continue to bleed and there could be more losses. The main support for bitcoin buyers for the current wave is USD 5,000, below which the price might decline towards the USD 4,200 support in the medium term.