After what was a rather good week for crypto, we start this week in the gutter. Monday started with a new low, again with drops roughly around 5% across the board. What exactly is this indicating for the market? Are we set for new lows? Will Bitcoin break the $3000 USD mark? Lets us take a deeper look.
Bitcoin, as always, is the trendsetter. We were looking very bullish through the weekend, holding above the 4K mark and testing it several times. Monday morning broke that, ending the bullish signs, and now leading us again back to a bearish Bitcoin. We have recovered slightly, but are still below 4K. The market is indicating that we will visit new lows this week, hopefully staying above 3K.
XRP followed the trend, although dropping slightly less than Bitcoin and its other competitors. Ripple is still a very interesting watch and something that you should keep an eye on especially with word that they are partnering with a major bank in the short term.
Ethereum fell almost exactly the same as Bitcoin, but still maintaining above the $100 USD mark. It is evident that Ethereum is still acting like a market leader, and still represents a catalyst in both the negative and positive actions in the crypto market. Ethereum is becoming much more interesting as of late due to the fact that Vitalik, founder of Ethereum, has been more vocal in public in his defense for the Ethereum platform and the direction it will be going in the future. Stay vigilant with the battle between leaders in Ethereum vs. Tron.
There isn’t much to talk about for Bitcoin Cash, but it is clear that Bitcoin SV is taking away a lot of Bitcoin Cash’s thunder. This battle of the Cash will continue. If we end up having a nice bull run for a time period longer than a month, this battle will be at the forefront of all competing cryptocurrencies.
The reason that these market updates are becoming shorter than usual is due to the fact that there is just not that much going on in the market. We are at a point where the price action is basically a fight between the true believers and those that are still trying to make quick profits in a volatile market. This obviously won’t last forever, but we do need something that can pick up market interest so volume traded can increase. It is likely that Bitcoin and the crypto market will further be on the decline—which is actually a good thing. One catalyst could be that cryptocurrencies are at such a discount that traders will have no choice but to start buying up good projects to add to their portfolio.
Remember—similar to traditional markets, fundamentals matter. We are getting to a stage where high returns on scammy projects are no longer relevant. Be smart about which tokens you have in your portfolio.