The Cryptocurrency Market Is In Distress, The Time To Buy Is Now

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The Cryptocurrency Market Is In Distress, The Time To Buy Is Now

A Buying Opportunity Of Historic Proportions

Just when you though cryptocurrencies couldn’t move any lower they do, but for no apparent reason. Bitcoin, Ethereum, Litecoin and the other top ten currencies have all shed nearly 10% in the hours leading up to this post and look like they could keep moving lower. The reason is simple, the public has not come back to the market and may not without some positive catalyst to drive them. The good news is that there are multiple catalysts on the horizon that will help public awareness, perception and availability.

The biggest problem weighing on the minds of traders and the public alike is storage, and hacking. Yet another major exchange has been hacked to the tune of millions and there is no end to the wave of crime in sight. This poses a major problem as it makes owning the coins very risky without even considering the fact they are an emergent technology. If you can’t hold them safely then why hold them all is the general thought. The answer of course is to hold your tokens safely in your desktop based wallet, not in your trading account, and use CFDs to speculate the market.

What this means for buyers, owners and holders of cryptocurrencies is that an historical opportunity is developing. Cryptocurrency prices have entered a zone that many technicians, myself included, never thought they would again. Litecoin is in the lead on the march lower, having broken through a major support level and confirming a bearish triangle. This move is indicative of lower prices and could take LTC/USD down to retest the $50 level it was trading at before the 2020 run-up in price, a potential drop of 45% from current prices.

Ethereum is doing better, having found support well above its long term low. This token is now confirming support at that level and establishing its dominance as a market leader. While LTC is expected to recover as the network expands, ETH is expected to shoot higher later in the year as a trio of major upgrades help it reach scale and improve transaction speed. A move below $475 would be bearish but only in the near term. Longer term ETH is likely to move up and retest its highs.

Aside from technical catalysts, upgrades to the system, both ETH and LTC face regulatory catalysts as well. A recent statement from the SEC, coupled with activity in England, has paved the way for Ethereum and Litecoin based futures products to be listed on US exchanges. Listing on US exchanges means access to institutional traders and enhanced liquidity for the entire cryptocurrency market.

The Cryptocurrency Market Is In Distress, The Time To Buy Is Now

A Buying Opportunity Of Historic Proportions

Just when you though cryptocurrencies couldn’t move any lower they do, but for no apparent reason. Bitcoin, Ethereum, Litecoin and the other top ten currencies have all shed nearly 10% in the hours leading up to this post and look like they could keep moving lower. The reason is simple, the public has not come back to the market and may not without some positive catalyst to drive them. The good news is that there are multiple catalysts on the horizon that will help public awareness, perception and availability.

The biggest problem weighing on the minds of traders and the public alike is storage, and hacking. Yet another major exchange has been hacked to the tune of millions and there is no end to the wave of crime in sight. This poses a major problem as it makes owning the coins very risky without even considering the fact they are an emergent technology. If you can’t hold them safely then why hold them all is the general thought. The answer of course is to hold your tokens safely in your desktop based wallet, not in your trading account, and use CFDs to speculate the market.

What this means for buyers, owners and holders of cryptocurrencies is that an historical opportunity is developing. Cryptocurrency prices have entered a zone that many technicians, myself included, never thought they would again. Litecoin is in the lead on the march lower, having broken through a major support level and confirming a bearish triangle. This move is indicative of lower prices and could take LTC/USD down to retest the $50 level it was trading at before the 2020 run-up in price, a potential drop of 45% from current prices.

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Ethereum is doing better, having found support well above its long term low. This token is now confirming support at that level and establishing its dominance as a market leader. While LTC is expected to recover as the network expands, ETH is expected to shoot higher later in the year as a trio of major upgrades help it reach scale and improve transaction speed. A move below $475 would be bearish but only in the near term. Longer term ETH is likely to move up and retest its highs.

Aside from technical catalysts, upgrades to the system, both ETH and LTC face regulatory catalysts as well. A recent statement from the SEC, coupled with activity in England, has paved the way for Ethereum and Litecoin based futures products to be listed on US exchanges. Listing on US exchanges means access to institutional traders and enhanced liquidity for the entire cryptocurrency market.

The Cryptocurrency Market Update: The calm Sunday upon as Bitcoin price settles above $5,000

The cryptocurrency market appears to be stable on Sunday after a bearish Saturday. Price action is almost non-existent among the top three: Bitcoin, Ethereum and Ripple. BTC bulls have managed to sustain the price above $5,000 following the recovery from the lows traded on Friday around $3,864. The rest of the cryptocurrency market is in the green apart from selected cryptoassets such as Iota and Monero.

BTC/USD is trading at $5,224 following a subtle 1.13% growth on the day. An attempt to break the resistance at $6,000 failed on Saturday and bulls are choosing to stay safe by defending the support at $5,000. Bitcoin remains relatively bearish but the low volatility means that movements are unlikely to be rapid.

ETH/USD is slightly in the red after losing 0.67% of its value on the day. As discussed in the price analysis on Saturday, the selling pressure at $135 is a hard nut to crack. For now, the buyers are concentrating on defending the support at $120. Ethereum is trading at $120 amid a building bearish momentum. If support at $120 holds, the buyers will have the chance to focus on higher levels at $130, $135 and $140.

XRP/USD is in the green on the day. Ripple has been mostly stable after recovering from the recent dip to that tested $0.10. However, the recovery has been limited under $0.16 even with a 1.7% growth in the day. At the moment, XRP is trading at $0.1485 at the time of writing after adjusting from $0.1525 (intraday high).

The most improved cryptocurrency in the last 24 hours is IOTA. It holds the 24 th position on the market with a market cap of $407 billion. IOTA/USD is up 20% to trade at $0.1467.

Chart of the day: BTC/USD 1-hour chart

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

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