Bitcoin and Ether Market Update: February 27, 2020
Total crypto market cap lost $37.5 billion from its value since Monday morning and now stands at $246.2 billion. Top ten coins are all in red for the last 24 hours with Litecoin (LTC) and EOS (EOS) being the biggest losers with 11.5 and 9.3 percent of losses respectively. At the time of writing Bitcoin (BTC) is trading at $8,722 on the Bitstamp daily chart, while ether (ETH) moved to $218 and Ripple’s XRP fell down to $0.231.
Bitcoin registered one of its best session in the last few days and moved up to $9,968 on Sunday, February 23. The coin added 3 percent to its value as bulls were ready to test the $10,000 support.
The new week, however, started with a large selloff in traditional markets, which did not spare digital assets. The latest development around the Coronavirus COVID-19 outbreak played a major role as the supply chain industry was slowing down in the absence of proper treatment and prevention for the disease.
The BTC/USD pair was rejected hard at $10,000 on the first trading day of the week and lost 3.2 percent of its value before stopping at $9,652.
24-hour trading volumes slightly increased from around $32 billion during the weekend to $38-$40 billion on Monday and Tuesday as more and more positions were liquidated. This, combined with the persisting bear pressure resulted in a sharp drop to $9,298 on Tuesday, February 25. The leading cryptocurrency broke below the $9,500 support zone (Fibonacci 23.60 level) for the first time since February 5.
The mid-week session on Wednesday was no different and BTC formed its third consecutive red candle on the daily chart with. It fell below the 50-day EMA and lost another 5.6 percent of the price while breaking the next obvious support zone – $9,150 – $9,000, also near Feb 38.20. The most popular cryptocurrency stopped at $8,775 and found support at the 200-day EMA.
The Ethereum Project token ETH climbed up to $275 on Sunday, February 23 and bulls were getting ready to test the important resistance line.
The leading altcoin opened the new trading period on Monday by following the general crypto trend. The coin closed the session at $265 after falling as low as $255 during intraday.
On Tuesday, February 25, the ETH/USD pair continued to slide and reached $246 while losing 7 percent of its value. It broke below the $250 support and did not stop in front of the Fibonacci 23.60 line at $247.
The 24-hour trading volumes remained stable between $17-$19 billion on the first two weekdays, but bears were taking advantage of the lower volumes and were successfully pushing price down.
On Wednesday, the ether nosedived to $221 in the first half of the day smashing through both the $230-$225 support area and Fibonacci 38.20 level at $222 to reach $214. The $222 mark was a long-standing support/resistance in the last few months. The coin managed to recover some of the losses in the late hours of trading and ended the day at $223, above the mentioned line.