Fundamental analysis and financial markets. Bitcoin, Ripple, Ether, Litecoin – News and Talking Points – Cryptocurrency losses rack-up over the week.
– Traders should be wary going into the weekend as the current sideways trade may quickly change to sharp moves in either direction. To see how traders are currently positioned in cryptocurrencies and what it means for the market looking ahead, check out the IG Client Sentiment page.
The cryptocurrency market has lost around $70 billion in market capitalization over the week – at the time of writing – with losses spread across the board. A warning from the IMF over cryptocurrencies and a notice from Google that they will be stopping ICO/cryptocurrency advertising, sent the market lower, taking out support levels along the way.
A current period of consolidation is in play but traders should be wary that weekend trade can easily move the market in either direction, and should be ready for any eventuality. Currently trading around $8350, BTC is still just above the downward channel started from the December 17 high and below the 78.6% Fibonacci retracement level at $8523.
If BTC falls back into the down channel and closes in there for a couple of days, the $6000 February 6 low comes into play ahead of the full retracement of the November 12 – December 17 move at $5406 heaves into view. On the upside, $8523 before $9300, the bottom of Zone One. Read more from dailyfx.com…
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