- Bitcoin plunged to $ 16,350 after investors rushed to withdraw funds from the OKEx cryptocurrency exchange.
- Ethereum is struggling to hold above $ 500 after falling to $ 480 amid the widespread sell-off.
- Ripple holds support at 50 SMA on 4 hour chart; consolidation is likely before another breakout.
The cryptocurrency market painted red during the European session on Thursday as traders and investors began to take profits. As reported earlier today, a correction was imminent, mostly due to the cryptocurrency’s fear and greed index at an all time high.
Bitcoin went from an annual high to $ 19,500 to trade hands at $ 16,350. Ethereum is also bleeding profusely after losing 15% of its value in the past 24 hours. Ripple is the hardest hit among the top three, with losses amounting to 24%.
The rest of the cryptocurrency market is in loss, as evidenced by the decline in total market capitalization from the monthly high of $ 582 billion to $ 496 billion at the time of writing. The sale was likely triggered after withdrawals resumed by the OKEx exchange. Over $ 50 million in Bitcoin has already left the exchange as investors rush to get their funds.
Bitcoin’s massive sell-off could be unstoppable at $ 15,600
Bitcoin is subject to intense headwinds with losses below the most crucial 50 simple moving average level on the 4 hour chart. Bitcoin has not traded below this moving average since the start of October, during a continuing uptrend.
The blackout failed to find support at the 100 SMA and losses rose to a weekly low of $ 16,350. BTC / USD is bumping to $ 16,750 in a developing bearish momentum. The bearish divergence pattern formed by the relative strength index also validated the downtrend. Bitcoin could extend the bearish leg to the 200 SMA before the recovery kicks in.
4 hour BTC / USD chart
Ethereum price drop eyes $ 450
Ethereum has deteriorated significantly from the new annual high traded at $ 620. Ether is trading at $ 502 at the time of writing. The bearish leg tested $ 480 on the downside, but a reflex recovery pulled the smart contact token higher.
If Ethereum failed to close the day above $ 500, it is likely to resume declines below 100 SMA. Besides the congestion of buyers at $ 480, the next formidable support is the 200 SMA slightly above $ 450.
4-hour ETH / USD chart
The RSI has plunged into the oversold zone which means the selling pressure is intense at the time of writing. However, the oversold conditions also suggest that the volume is decreasing and that a reversal is possible. Also, a close above the 100 SMA and $ 500 would see stability return to the market, paving the way for gains towards the 50 SMA at $ 540.
Ripple needs to maintain this critical support to resume the uptrend
Ripple’s flash peak at $ 0.92 earlier this week was not sustainable. Initially, support was adopted at $ 0.55, but the rally could not exceed $ 0.75. The widespread market selloff on Thursday extended losses below $ 0.5 before the downtrend came to a standstill at the 50 SMA.
In the meantime, the cross-border cryptocurrency is trading at $ 0.51 as the bulls work extremely hard to resume the uptrend that had its eyes on $ 1. Therefore, it is essential to keep the price above the 50 SMA, which could help to stay focused on higher levels. Buyers should also be prepared for a probable delay at $ 0.75 (short term resistance).
4 hour XRP / USD chart
Support at the 50 SMA is vital for bulls focused on raising Ripple to $ 1. On the other hand, trading below the crucial level could result in losses for the 100 SMA at $ 0.35 and 200 SMA at $ 0.3, respectively. If technical indices remain intact, the RSI shows that sideways trade action may come into play in the short term before another breakout.