Total crypto market cap erased $268 billion from its value for the period since Monday and now stands at $2.21 trillion. The top ten coins are all in red for the last 24 hours with Dogecoin (DOGE) and Litecoin (LTC) losing 18.5 and 17 percent of their respective values for the period. At the time of writing bitcoin (BTC) is trading at $49,330, ether (ETH) is hovering around $3,730.
Bitcoin closed the trading day on Sunday, May 9 at $58,242 after hovering around the 50-day EMA on the daily chart throughout the week. The biggest cryptocurrency managed to regain positions above the important $56,000 level but was still struggling to surpass the important multi-timeframe resistance at $59,000. It was 2.8 percent up on a seven-day basis.
The most important thing about last week’s action was that BTC was able to confirm the bullish engulfment on the weekly chart thus keeping the uptrend intact.
On Monday, the BTC/USDT pair was once again rejected at the mentioned resistance, which triggered a selloff. The pair was trading in the wide $59,500 – $53,300 range during intraday before closing at $56,000.
The second day of the workweek was relatively calm as neither buyers nor bulls were able to push the price in any direction. Bitcoin formed a short green candle to $56,600, once again climbing above the 21-day EMA.
The mid-week session was when bulls finally capitulated cracking under the sell pressure. BTC lost 12.4 percent of its value and fell below the $50k mark for the first time since April 25, eventually closing at $49,500.
It is worth noting that on the daily timeframe, the BTC/USDT pair was in a clear Diamond Pattern formation, which usually marks the beginning of a deeper correction. Tesla’s CEO Elon Musk put additional pressure on the market announcing that the company will stop using BTC as a payment method over concerns about the impact of the mining process on the environment.
The coin is trading flat midday on Thursday recovering from yet another 7 percent dump to $46,000 earlier in the session.
The Ethereum project token ETH was moving steadily in a solid uptrend, uncorrelated to the recent technical and fundamental issues faced by Bitcoin. Even the sky-high Ethereum network transaction fees could not push users away from using the leading DeFi platforms.
To prove the above statement, ether closed the session on Sunday, May 9 flat at $3,922 after adding 33.4 percent to its valuation on a weekly basis.
ETH registered a new all-time high on Monday hitting $4,195 in the early hours of trading but made a full retrace later in the session, remaining in the same price range as the last two days.
On Tuesday, it made yet another 5.3 percent jump, but this time was able to keep the gains and ended the day at $4,180.
The ETH/USDT pair initiated a pullback during the mid-week session on Wednesday as the entire cryptocurrency market was experiencing a double-digit price correction. The leading altcoin was no exception erasing 9 percent and moving down to the previous uptrend resistance line.
It is hovering around $3,800 midday on Thursday, unchanged from the daily candle close.