The cryptocurrency market continues to grind lower in the Q4 of 2018. The sudden declines in November revamped the high volatility following a period of stability especially in Bitcoin price which was had remained stable between the highs of $6,800 and the lows of $6,200. However, the unstoppable downtrend is seeing cryptos explore yearly lows. The global market capitalization stands at $120 billion according to the live data streamed by Blockmodo. At the beginning of November, the market cap was stable above $200 billion with surges that hit the levels above $220 billion. A bottom is yet to be established, although most of the assets have been oversold. No one can tell when a reversal should be expected. Therefore, this analysis is only short-term and might not be relevant for a long period.
Bitcoin extended the declines at the beginning of the week. The drop came after the price failed to break the resistance at $4,400. There was another attempt to correction higher on Tuesday but the bulls run out of steam marginally above $4,000. The trading on Wednesday was not different as BTC/USD continued with the downward struggle almost testing the yearly lows.
Meanwhile, the king of cryptocurrencies is flirting with $3,700. The price has also formed a descending channel that has been limiting gains to the upside. Bitcoin price appears to have found balance at the mid-channel support. However, upside is immediately capped by the 23.6% Fib retracement level between a high of 4,036.46 and a low of $3,662.61. The 50 SMA is also hindering growth in the 15-minutes range. BTC/USD will encounter more difficulty at the 100 SMA (upper channel trendline resistance), the 61.8% Fib level and the swing high hurdle.
On the downside, the initial support can be seen at $3,680. Further down, the yearly lows close to $3,500 will work as strong anchor. A broader look at the chart shows that Bitcoin current sideways movement will continue in the short-term as indicated by the stochastic, which is in a range around the 50% mark.
VeChain has also been sinking since the week started. The selling pressure in the market still overwhelms the battered bulls. The entire crypto market must change the trend for us to see significant gains in altcoins like VeChain. Currently, VET/USD is trading at $0.004459 following a 3.41% drop in the last 24 hours. The $247 million asset has a 24-hour exchange trading volume of $7.6 million.
This week’s trading has seen VeChain price form a new trend within a bear channel. The asset is still trading lower lows and lower highs. A support has been established at $0.0044. Immediately to the upside, VeChain reversal is limited by the 100 SMA currently at $0.0046.
The trend is slightly bullish at the time of writing, besides, the stochastic has been able to avoid the oversold region in addition to changing direction north. The 50 SMA is above the 100 SMA to show that buying pressure is present and we could see more upside movement in the near-time.
Dogecoin was able to break free from the descending channel resistance. The crypto was stuck in the channel following the widespread paralyzing declines that began mid-November. After coming out of the bear channel, the asset corrected higher as it stepped above $0.0023. However, there was retracement as the bullish trend momentum fizzled out short of $0.0024.
The slide found balance at $0.0021 and in urn forming a ranging channel with the upper limit at $0.0023. DOGE/USD is currently range bound in this channel. It is trading at $0.0022 but contrary to Bitcoin and VeChain, Dogecoin is trading above the hourly simple moving averages. This means that the trend is in favor of the bulls and we could see further upside movement attacking the range limit.
The stochastic is almost hitting the overbought regions showing an increase in bullish pressure. The first support is at $0.0022, both the 50 SMA and the 100 SMA will work as support lines too. Moreover, more support will be found at $0.0021 and the primary support at $0.0020.