Yesterday, institutional investors in the lite of Microstrategy, hedge funds and also retail traders long position was liquated. More than 13 billion worth of the US Dollar went into the dark as the crypto market capiterlization plummented from its recent record all time high .
United States Secretary of the Treasury, Janet Yellen made a comment on digital currencies yesterday that “cryptocurrency is extremely inefficient for conducting transactions.” and more so the CEO of Tesla made a profound statement by Comparing Crypto to Gold, and said that “Prices of Bitcoin and Ethereum Seem High from his tweet handle.”
Uncertainty drip into the crypto market as traders have bearish sentiment bias as a result of the press release of janet yellen.
BTC decline by 16.97% yesterday after it printed a fake out with a high of $58,194.17 on the 21st of February at resistance of $57510.29.
From our weekly forecast yesterday we do make mention that “If the volatility drop at the beginning of the week ahead we could have slight dip to a low of $47,115.26 to hit 9 EMA as a support for a healthy rally.”
Yesterdays it was strong bearish engulfing opened of the trading session during the early hours of the Asian session.
BTC price fell to $55,823.37 support. as the bear pressure intensify the bulls lack the tenacity to hold firm the support which result to plunged of BTC price to an intraday low of $47,707.95 .
BTC price made a retracement to close above on the 17th of February resistance of $52,586.32.
For the day ahead if the bears break below the lower band of the Bollinger band and a horizontal support of $52,766.99 could lead to further plunged to a low of $47,843.08 to fill the bearish weekly candle that was printed yesterday at 20:00 UTC .
But if the bulls regain volume by institutional demand, BTC could retest $55,847.71 as the first hurdle to resume the uptrend.
The bull’s fails to sustain LTC price above the $241.11 major resistance that was printed on the 2oth of February. Base on the bearish bias, traders liquidated their long position to short the LTC pairs, while spot traders resulted to profit booking as the bulls lack volume to further extend the rally during the course of the trading session.
The crypto bears broke below the 20-day SMA and the $221.63 horizontal support yesterday which caused LTC price to tank to a support of $180.05 with a long rejection wick. Although the long tail bearish candlestick pattern at 12:00 UTC shows that the bulls bought yesterday dip.
If the bulls break and sustains LTC price above the 20-day SMA, the bulls will again try to resume the uptrend for a probable retest of it all time high although it will be face with traffic at $243.25 as primary hurdle for trend continuation.
On the contrary, if the bulls fails to break 20-day SMA and 219.01 minor resistance, the LTC price could dip to a low of $161.003 in the day ahead.
After 8 days of consolidation with range bound of $753.91 and $666.61, the bears finally have upper hand to the downside yesterday when the price tank below the $670 support.
The BCH price broke below the 20-day SMA and fell to an intraday low at $536.67 yesterday. Conversely, the bulls violently purchased the dip below the $539 support, follow-on in a sharp rebound to $605.55 where a minor support was found.
If the BCH price sustains above the 20-day SMA, the bulls will again try to push the price back into the $666.46 to $753.91 range bound. If this scenario plays out, this will suggest that the current correction of the uptrend is over and uptrend will resume in the midterm.
But On the contrary, if the BCH price sustains below the 20-day SMA and the bears break below $605.55 minor support in during the early hour of the Asian session, BCH price may again plunged to $524.90 and probably wick down to a low of $486.74 in the day ahead.
About ZB Group
ZB Group was founded in 2012 with the goal of providing leadership to the blockchain development space and today manages a network that includes digital assets exchanges, wallets, capital ventures, research institutes, and media. The Group’s flagship platform is ZB.com, the industry leading digital asset exchange. The platform launched in early 2013 and boasts one of the world’s largest trading communities.
ZB Group also includes ZBG the innovative crypto trading platform, and BW.com, the world’s first mining-pool based exchange. Other holdings include wallet leader BitBank.
Industry intelligence and standards are headed by the recently launched ZB Nexus who embody the core values of ZB Group and open-source their reports and analysis for the public.
Learn more about ZB Exchange by visiting www.zb.com.