The second week of January 2019 was punctuated by a Bearish trend in the markets across the board. This was after a promising start to the New Year where a Bullish trend was observed in most cryptos. The upward trend was projected to continue till the various Altcoins regained their previous psychological prices which had come down in the post fork period.
Throughout the week, Bitcoin went under the $4000 mark which had held as support in week 1. The trend was also seen in Ripple and Ethereum which moved into the ‘oversold’ area during the week signaling negative investor sentiments.
Throughout the week, Bitcoin lost by 13.24%. It began the week trading at $4169 with a strong support at $4000 and most indicators pointing towards an upward trajectory. As the week wore on however, the Bears hit the market with a strong bearish momentum that saw Bitcoin end the week at $3617.
The Bearish momentum tested and breached the previous support level. It formed a contracting triangular pattern as seen in C and B- 7 and 21 day Moving Averages respectively. In the markets, BTC was oversold twice throughout the week. This is as seen in A where the RSI dipped twice. Investors were looking to dispose of their BTC holdings for fear of loss.
For better parts of the week, the 21 day Moving average was above the 7 day moving average which indicates that the downward trend may be here for longer.
Throughout the week, Ethereum went down by 25%. On January 7, ETH was trading at $160 against the current rate of $119. Despite the loss however, Ethereum was in the fundamental news for all the good reasons after it overtook Ripple in Market capitalization. The downside of this milestone was that its Relative Strength Index (RSI – marked A) crossed into the ‘oversold’ area twice. This indicated dwindled investor confidence in Ethereum.
Additionally, the 21 day Moving average (marked B) was dominantly above the 7 day EMA (C) which goes to show that the Bearish trend may persist into week 3.
The week that-was was a bag of mixed fortunes for Ripple. On one hand, it nosedived in value, coming from $0.37680 down to today’s $0.3275. On the other, it finally hit the $2 Billion mark in terms of market capitalization.
Support held at $0.3 throughout the week and was barely tested. However, XRP’s stock among investors declined as seen in its RSI (A) which crossed into the ‘oversold’ area twice.
Both moving averages (C and B) are also downward which indicates the downward trend will continue unless the Bulls can up their momentum. CRYPTO IS COMING!