The drop in the Cryptocurrency market, that happened on Wednesday, wasn’t something that a lot of people were waiting to see. Especially when it came to Bitcoin, the Bulls failed to keep the instrument trading above $57,000, hence allowing it to fall below the $56,000 support level. This whole issue started when the Bulls didn’t have the needed momentum to actually push the cryptocurrency through $60,000.
As of this writing, BTC broke through the $57,000 resistance level and it’s currently trading barely above it around $57,100. Now the Bulls will need to keep the momentum alive, by staying above the mentioned resistance level, as they gear up to take on the 50-SMA (Simple Moving Average) on the 4-hour chart near $58,000.
Ethereum has finally broken through the $2,000 barrier which has been a thorn in the side of Bulls. Breaking above this level has allowed the instrument to set a new high at around $2,150. The first time ETH reaches that level, it fell back towards the newly established support at $2,000 which allowed the Bulls to attempt another move higher but failed once again. This allowed the Bears to move in and capture the failure to drive the instrument below $2,000.
However, when we look at the RSI and MACD of this instrument on the 4-hour chart, we can see that the correction is done.
While not as explosive as BTC or ETH, Litecoin has also managed to climb higher, reaching a high of $244, before facing some bearish pressure. The bullish momentum didn’t seem to have enough strength to continue past the $240 mark and fell almost $30 towards $210. The positive thing about this move is that it remains above all three SMAs (50, 100, and 200), which gives the Bulls an extra push to keep the movement alive.
The RSI and MACD on this instrument do show some wear and tear, signalling that the bearish momentum is not cleared out.
(Note: The above thought piece covers the wider VA industry, and may not be an activity that Arabian Bourse Limited (ABX) is looking to be licensed to undertake.
ABX has received in-principal approval from Financial Services Regulatory Authority of Abu Dhabi Global Market (ADGM) and is currently in the process of obtaining an FSP. ABX aims to be the first of its kind fully regulated, virtual asset MTF and custodian in the region focused on institutional and retail investors.)
