The market is mostly green today especially for the top twenty cryptocurrencies by market capitalization. However, selected coins like NEO and Ethereum Classic (ETH) are still languishing in selling pressure. The bears increased their presence in the market yesterday culminating in declines of over $5 billion. The total market capitalization is at $203, nonetheless, ongoing upside corrections are likely to recover above $210 billion in the near-term.
Elsewhere, the Japan Financial Services Agency has said that it does not recognize stablecoins like Tether (USDT) to be cryptocurrencies. In other regulation news, China is warming up to Bitcoin and other virtual assets allowing citizens to hold and transact BTC. Still in regulation, it is likely that the UK regulator will ban futures contracts for cryptocurrencies following a recent published review.
Bitcoin declines almost cancel most of the gains that had been made in the previous week. Although last week saw Bitcoin reject the support at $6,600, it was pivotal at $6,400. The stability of Bitcoin price resembled the one of a mature asset. However, the situation was not favorable to speculators. The trend yesterday saw the volatility in the market ousted as the price dived below $6,300.
The buyers managed to keep the price above the levels at $6,200 before increasing the entries. There was a pullback above $6,250 but the price has been capped below $6,300. BTC/USD currently trades at $6,260. The stochastic is revamping the trend to the upside to signal that the bulls are beginning to gain ground against the bears. The RSI, on the other hand, is stuck below 40 percent, which means that although the trend is in the favor the bulls, they currently lack the energy to push the price upwards.
Bitcoin Cash (BCH)
Just like Bitcoin (BTC), Bitcoin Cash bulls were battered on Monday after a period of stability in the market. Excluding a number of altcoins that have been recording gains like Dent (DENT), other assets had maintained low volatility levels. Bitcoin Cash, for example, was sitting comfortably above $430.
However, the bear wave in the market led to sharp declines below the short-term support area at $410. This support has been very instrument during past bear corrections giving bulls a refuge amid a market full of bear presence. BCH/USD found a support at $408 before starting to gasp for air in the sea of red bloody waters.
At the moment, Bitcoin Cash has formed a bear flag pattern after failing to correct above $420. A bear flag pattern usually but not all the time, signals a trend continuation. This means that, BCH/USD is at risk of further breakdown that could break below $400. In the meantime, the coin is exchanging at $415. A bullish momentum is underway but facing acute selling pressure at $416. On the downside, a support is highlighted at $408 while $400 is the primary support area.
EOS, on the other hand, also fell victim to the bear pressure yesterday. The crypto plunged from the consolidation levels above $5.4 only to find a support $5.10. The crypto fell like deadweight in the air unable to find support at $5.25 and $5.15. Although there has been a bullish correction on the day, EOS/USD has been locked in a range below $5.2. The digital asset is changing hands at $5.16. The buyers are battling to escaped from the bear range but technical indicators show that the low volatility level exemplified today is likely to progress into the near future.