The total crypto market cap erased $78 billion from its valuation for the period since Monday and now stands at $1.22 trillion. The top ten coins were all in red for the last 24 hours with Solana (SOL) and Polkadot (DOT) being the worst performers with 9.2 and 7.3 percent of losses respectively. At the time of writing bitcoin (BTC) is trading at $29,194. Ether (ETH) is at $1,834.
Bitcoin closed the trading day on Sunday, May 22 at $30,340 after a two-day long rally. However, this did not help it reverse the general trend and it registered a total of 3.3 percent loss on a weekly basis closing 8 consecutive weeks in red for the first time in its history.
On the daily timeframe chart, the BTC/USDT pair was still caught in the $28,500 – $31,500 range as neither bulls nor bears were able to take over control of the price action.
On Monday, bears pushed the price down to $29,100 completely erasing the gains from the previous two sessions. BTC lost 3.8 percent of its valuation.
We saw it trading even lower – at $28,700 on the next day – May 24, but bulls were quick to react and fully absorbed the losses. The biggest cryptocurrency eventually closed the daily candle in green, at $29,600.
The mid-week session on Wednesday came with a continuation of the improvised reversal to the upside and the coin reached the $30,200 zone in the morning, but then fell back down to $29,500 in the afternoon.
The 24-hour trading volumes were still low, but we could clearly see a bullish divergence with the Relative Strength Index (RSI) on the daily chart.
What we are seeing midday on Thursday is a significant price correction as Bitcoin is re-testing the horizontal support below $29,000.
The Ethereum project token ETH ended the previous trading week at $2,041 and with a 5.1 percent loss after a positive weekend for buyers. However, just like Bitcoin, the ether was still hovering around the horizontal macro support level waiting for something to push it in either direction.
On Monday, the ETH/USDT pair hit a three-day high at $2,086 early in the session, but then reversed its direction and closed in red at $1,973 fully erasing the gains from the Sunday trading.
The leading altcoin quickly dropped to $1,911 on Tuesday morning but then bounced back closing near the $2,000 mark.
The third day of the workweek came with a relatively calm session with low volatility as the market was expecting the minutes from the last Federal Open Market Committee meeting. The ether itself was lacking the necessary trading volumes to support a strong bullish reversal that can see it break out of the range while bears seemed exhausted. It ended the day at $1,940.
Here we could also see a bullish divergence on the daily timeframe chart.
As of the time of writing, ETH is trading at $1,830, below the horizontal support.