Bitcoin and Ether Market Update February 24, 2022
Total crypto market cap erased $136 billion from its value for the period since Monday and now stands at $1.57 trillion. The top ten coins are all in red for the last 24 hours with Cardano (ADA) and XRP (XRP) being the worst performers with 19 and 13.5 percent of losses respectively. At the time of writing bitcoin (BTC) is trading at $35,220. Ether (ETH) is at $2,350.
Bitcoin closed the trading day on Sunday, February 20 at $38,380 losing 4.4 percent of its value for the session making it 8.6 percent for the last seven days. Bulls were rejected at the 21-period EMA on the Weekly timeframe, right below the major resistance in the $45,600 – $46,600 area.
On Monday, the BTC/USDT pair continued to fall, pushed down by the increasing selling pressure and rising 24-hour volumes. The combination of falling prices and increased volumes usually is a sign that a trend continuation can be expected.
Buyers showed up on Tuesday as BTC drew a similar candle but in the opposite direction, erasing all losses.
The mid-week trading on Wednesday came with a reversal attempt in the early hours of the morning as the leading cryptocurrency briefly hit $39,260 before fully retracing and eventually moving on a red territory by the daily candle close. It stopped at $37,300.
On Thursday, bitcoin reacted to the Russian invasion of Ukraine dropping to $35,100. The coin re-visited the January low and is now testing the horizontal once again. A break below the $34,000 mark will open the door for $30k and the area below it.
On the weekly chart, we can clearly see an RSI indicator entering oversold territory while volumes are decreasing below the average for the last 14 periods.
The Ethereum project token ETH was as well rejected near the 21-period EMA on the weekly timeframe and lost 8.9 percent of its value on a weekly basis to hit the lower boundary of the long-term diagonal downtrend at $2,610.
On Monday, February 21 the ether attempted a reversal to the upside, but bulls faced a wall at $2,740. The rejection resulted in a sixth consecutive red candle on the daily chart.
The Tuesday session was slightly different and buyers were able to partially regain positions. The ETH/USDT pair climbed up to $2,636 and cemented its presence above the mentioned resistance.
The so-called reversal continued on the third day of the workweek when the price touched again in the zone near $2,750. The bull traders were unable to surpass it and fell victims to the sell wall around it which caused the price to decrease down to $2,570.
What we are seeing midday on Thursday, February 24 is increased selling pressure as a result of the all-out invasion of Ukraine by the Russian Federation. Risk assets are in a freefall as investors are turning to safe havens like gold and silver while natural gas and oil see record jumps.
ETH is currently trading at $2,374 or 8 percent lower.