Over the past few days, cryptocurrency markets have been losing steam as many digital assets lost significant value. Most coins are down between 3-15% in the last 24 hours. Bitcoin Cash (BCH) fell 10% to trade around $1,055, while Bitcoin Core (BTC) dropped 4.1% to $7,909, breaking below the $8,000 threshold. The overall market sentiment turned gloomy again.
Market Overview: Volumes Shrink Sharply
Unlike the bullish spring of 2017, this year's crypto market is experiencing a harsh downturn. All top 50 cryptocurrencies are in the red. Total market capitalization stands at approximately $345 billion, with 24-hour volumes of only $17.8 billion. This marks a significant decline from two weeks ago when BCH daily volumes exceeded $2 billion and BTC volumes were $8-9 billion. Current BCH volumes are just $722 million and BTC volumes are around $5 billion.
Bitcoin Cash (BCH) Market Action
BCH has dropped about 8% in 24 hours and 16% over the past week. Leading exchanges for BCH trading include Okex, Hitbtc, Bitfinex, Lbank, and Huobi. The top trading pairs are BCH/BTC (39.3%), BCH/USDT (24.7%), BCH/USD (20.5%), BCH/KRW (10.3%), and BCH/EUR (2.3%). Other currencies such as Ethereum, Japanese yen, and Waves also capture notable shares of BCH volume.
BCH/USD Technical Indicators
On the 4-hour BCH/USD chart from Bitfinex and Bitstamp, bulls attempted to regain ground after the drop. The two Simple Moving Averages (SMA) have crossed: 100 SMA below 200 SMA, indicating downside resistance. The Relative Strength Index (RSI) hovers in neutral territory, suggesting consolidation and uncertainty. MACD sits near -23 with room for improvement. Order books show that bulls need to push past a heavy sell wall between $1,090-$1,160. On the downside, support lies between $950-$1,000; a break below could lead to further declines.
Bitcoin Core (BTC) Market Action
BTC prices have fallen below the $8,000 region after holding above it for weeks. Currently trading around $7,927, BTC is down 4.6% over the past week. Daily volume has weakened to just $5.6 billion. Top exchanges include Binance, Bitfinex, Okex, Huobi, and Bitflyer. Pairs are dominated by BTC/JPY (55%), BTC/USD (19.8%), BTC/USDT (15%), BTC/KRW (3.7%), and BTC/EUR (3.2%).
BTC/USD Technical Indicators
Examining the 4-hour BTC/USD chart from Coinbase/GDAX and Bitstamp shows buyers stepping in this morning. The 100 SMA has crossed below the 200 SMA, indicating bearish control. However, RSI shows oversold conditions, suggesting a potential bounce. Order books reveal lighter resistance above: bulls need to break through the $8,000-$8,200 zone to reach higher levels, but resistance stiffens between $8,500-$8,750. Strong buy support exists between $7,400-$6,900, making a drop below that level unlikely in the near term.
The Verdict: Stormy Weather and Waning Optimism
Overall, most coins are suffering losses. Litecoin (LTC) and Ripple (XRP) have fared relatively better. One outlier is Bitcoin Private (BTCP), up 13%. The top 24-hour volume coins are Tether (USDT), Ethereum (ETH), EOS, Bitcoin Cash (BCH), and Tron (TRX). The persistent downturn has dampened bullish enthusiasm, leaving traders more skeptical than in previous weeks.