High Volatility in Bitcoin (BTC) – Altcoin Prices Take a Deep Breath


The massive sell-off on the entire crypto market seems to have stopped for the time being. Bitcoin and many altcoins are recovering from the lows of the previous weeks and some of them have made significant price gains.

The classic financial markets are still going down steeply this week. The Dow Jones (DOW30) falls 17 percent on a weekly basis. However, the overall market for all cryptocurrencies can develop slightly positively this week. The crypto market is thus decoupling somewhat from the extremely bearish development on the stock markets. Yesterday, the US Federal Reserve announced an “Unlimited QE”, whereupon the crypto market is currently growing strongly and Bitcoin is trading at $ 6,600. Altcoins can also benefit from this and in some cases generate substantial price increases.

The weekly winner among the top 10 altcoins with a price premium of 15 percentage points is Bitcoin Cash (BCH). Bitcoin SV (BSV) and Binance Coin (BNB) were also strong, each with a price increase of almost 11 percentage points. Last week’s winner Ripple (XRP), however, cannot confirm his bullish countermovement from the previous week and ended the week as a loser at a discount of three percentage points. Litecoin (LTC) and Tezos (XTZ) are also weak this week and show a negative price change. The tendency towards stabilization on the overall market is therefore on thin piles, the price development in the coming weeks will continue to be determined by exogenous global developments. Accordingly, high price fluctuations can still be expected.

Best exchange rate development among the top 10 altcoins: Bitcoin Cash (BCH)

BCH 23.03.20 - High Volatility in Bitcoin (BTC) - Altcoin Prices Take a Deep Breath
Exchange rate analysis based on the BCH / USDT pair  on Bittrex

After Bitcoin Cash had hit a new 52-week low 14 days ago, the price continued to recover in the slipstream of its big brother Bitcoin this week and is climbing back into the blue trend channel. The price is now trading just below the key resistance at $ 238. The moving average of the last 20 days (EMA20) (red) also runs in this area. If the BCH price makes it back above the $ 251 at the daily closing price, the chart image brightens further and targets at $ 270 (super trend) and above that at $ 300 move back into focus.

The EMA200 (blue) is currently running at $ 300. This area thus becomes elementary for the buyer’s warehouse in order to activate further price targets on the upper side in the event of a breakthrough. However, if Bitcoin Cash’s price falls below the EMA10 (yellow) at $ 207, there is a risk of a retest of $ 185 and below at $ 172. As long as this support area holds, the bulls still have chances of higher prices. A break of $ 172 would move the price back towards the lower edge of the support area at $ 148. A retest of the annual low at $ 131 would then also have to be planned.

Indicators: RSI and MACD on a daily basis with the first bullish trend

The RSI is listed on the daily chart at 43 and thus just below the neutral zone, but is currently rising slightly. The MACD is ahead of the RSI and has already generated a fresh buy signal. On the weekly view, however, the picture is different, the RSI is at 40, but is currently also rising slightly. The MACD indicator, however, still shows a short signal on a weekly basis, which is only negated at significantly higher BCH rates.

Worst exchange rate development among the top 10 altcoins: Ripple (XRP)

XRP 23.03.20 - High Volatility in Bitcoin (BTC) - Altcoin Prices Take a Deep Breath
Price analysis based on the pair of values  XRP / USDT on Bitfinex

If the price of Ripple was able to do a considerable reversal in the past week, there is currently a clear weakness again. So far, the XRP has failed to recapture the cross-resistance of December 2019 historical low and the EMA20 (red) at $ 0.175. The EMA10 (yellow) was only able to provide support for the course for a short time. Ripple’s price is currently trading at $ 0.150, again below this moving average.

If Ripple’s price falls below $ 0.144, it could sell again towards the all-time low at $ 0.128. If this elementary support breaks as well, it activates the price targets at $ 0.121 and below the previous all-time low of March 13, 2020, at $ 0.110. A first recovery for the bulls would be to go above the pink horizontal resistance at $ 0.176. The maximum target above this central resistance is $ 0.201.

Indicators: RSI and MACD on a daily and weekly basis with short signals

So far, the indicators support the bearish scenario. The RSI is trading at 36 on the daily chart and thus still in the bearish area. After all, the MACD shows a possible long signal, which is only triggered when the XRP price rises. A similar picture emerges from the weekly view. The RSI is trading at 33 and thus has an active sell signal. The same can be seen in the MACD indicator. So it can only be said that as long as there is no change, long purchases can still be avoided.

Stability of the top 10 coins

The picture for the top 10 altcoins is mixed this week. While Bitcoin Cash, Bitcoin SV and the Binance Coin can recover as strongly as Bitcoin, half of the top coins close almost unchanged in a weekly comparison. Overall, the charts of all top 10 altcoins continue to be bearish. Due to the different strong course recoveries, there are again two changes in the ranking this week. Bitcoin SV (BSV) can partially iron out the negative course of the previous week, again passes Litecoin (LTC) and jumps to fifth place. The newcomer OKB Cash (OKB) can convince again with a price increase of more than ten percentage points and moves past Tezos (XTZ) to ninth place.

Winner and loser of the last week in the cryptomarket

The recovery of the key currency Bitcoin (BTC) also causes the majority of the top 100 altcoins to rise this week. However, volatility remains high, reflecting continued uncertainty among investors. After all, around 90 percent of the altcoins show a course increase on a weekly basis. In particular, the SwipeCoin (SXP) stand out with a price increase of 124 percent, Steem (STEEM) with 64 percent and MCO (MCO) with a price premium of 57 percentage points. Also noteworthy is the price development of the anonymous payment coin Dash (DASH), which gains 48 percent in value under huge volume. On average, the top 100 altcoins have risen by 14 percentage points this week. The short list of losers is led by one of the previous week’s outperformers, Hedera Hashgraph (HBAR) with a price drop of 16 percent. The Altcoin Handshake (HNS) is also weak with a price loss of 8 percentage points and 0x (ZRX) of around five percent.

Extraordinary volatility is seen across markets amid the corona crisis. The crypto market is also not spared from this. Bitcoin volume has spiked and the price range has been more than 50% which is impossible to talk about a haven for the time being. After all, the key currency managed to defend the EMA200 at around $ 6,000 for the time being. However, the bullish counterattack to the weekly high of $ 7,000 has so far been only a technical countermovement. In the medium term, the chart would only be bullish if it stabilized above $ 8,500. For the time being, the altcoins will not be able to escape Bitcoin’s price direction, too great is the global uncertainty about the consequences of Covid-19.

The stock markets as a yardstick for the overall development in the financial markets continue to show no bottoming tendencies. In addition to building up cash holdings, institutional investors in particular choose investments with the lowest possible volatility, such as US government bonds. Altcoins currently only offer opportunities for short-term trades; The development in the coming weeks and months is too uncertain.


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About Author

Ethan Hunt

Bitcoin Maximalist and Toxic to our banking and monetary system. Separation of money and state is necessary just like the separation of religion and state in the past. Also, pro-local, pro-global and anti-national.

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