Cryptocurrencies just can’t seem to catch a break as we saw Bitcoin fell over 6% below $6000 per coin in the Tuesday morning trading session. This will be the cryptocurrencies lowest level since June 2018 and has dropped as much as 58% this year.
The cryptocurrency selloff was sparked by Initial Coin Offerings (ICOs) using the Ether blockchain for start-up projects, are said to be cashing out to cover expenses as the cryptocurrency bear market continues. Ethereum saw a 17% move lower on Monday to below $300 per coin.
Below I have summarised the technicals and charts for possible trades on both Bitcoin and Ethereum:
Looking at the chart of Bitcoin
We can see the price action mover lower to our target price of $5754 per coin as cryptocurrencies are under pressure. The price of Bitcoin did find some support at the $ 6087 level but could not hold. The price is also trading well below the 50 day simple moving average (SMA) which supports the move lower.
Looking at the chart of Ethereum
Ethereum has been trading in a descending channel for some time now as seen in the chart below and is currently finding support at the $251 per coin level. We might see the price move higher from here as the market is digesting the Initial Coin Offerings (ICO) news. Possible resistance for the price action might be back to the upper region of the channel to around the $351 level.
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