When Bitcoin rallies, altcoins retreat. Three days ago, Bitcoin price recorded more than 10% gains and is currently consolidating around the $7,450 level, which is the 0.382 Fibonacci level. As of press time, Bitcoin price is at $7,478, total market capitalization is $284 billion, and Bitcoin dominance is back to 45%. While Bitcoin recorded gains, altcoins tumbled in price action. The top 4 altcoins all record losses in the past 24-hour period. Here’s a closer look at the technical analysis of their price action trading over Bitcoin:
As of press time, Ethereum is trading over Bitcoin at the 0.062 BTC level. The price broke below multiple support levels and crashed back to April 2018 level. The MACD is far below the signal line, which means that current market sentiment is in favor of the bears. The RSI is on the oversold region but is currently arching back up attempting to bounce. In the short term, Ethereum may see further losses and consolidation before going on to price recovery.
XRP is currently trading at the 0.000061 BTC level. The price failed to break above the downtrend and broke below the major support level, which takes XRP price to December 2017 levels. The MACD is currently below the signal line, which means that momentum is still downward. The RSI is currently extremely oversold. XRP price could continue losing ground before a bounce comes. The next support level is seen at 0.00006 BTC level.
As of press time, Bitcoin Cash is trading over Bitcoin at 0.106 BTC level. Price is moving along a downward channel with strong resistance at 0.121 BTC level and support at 0.104 BTC mark. MACD is slightly above the signal line but is currently arching downward. This means that momentum is slowly shifting back down. The RSI is also approaching the oversold region but is still considerably far from it. Further declines could be expected, which will test the 0.104 BTC support level.
On the EOS/BTC trading pair, price continued the downward trend breaking below the support level, which now acts as resistance line. The MACD is slightly above the signal line, which could indicate an upward shift in momentum. This is supported by the last candle seemingly attempting a bounce. The RSI is currently approaching the oversold region. EOS could record some recovery if more buying sentiment comes to the market, and volume confirms the bounce.
All in all, altcoins are currently being oversold. Once the market sentiment becomes bullish again, we can expect some healthy recovery in altcoin prices. In the coming days, it is advisable that traders should brace for further losses and consolidation, before an upward bounce.
(DISCLAIMER: This is not financial advice. The analysis and recommendations provided here are based on my own research and personal opinion. Trade wisely!)