Weekly Crypto Market Analysis: Bitcoin makes a pit stop after racing upwards for six weeks, altcoins join it, and Binance pauses trading for six hours
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This Week’s Summary
- The Crypto Market ends the week at a total market capitalization of $286 billion
- Bitcoin loses momentum and falls below $10,000
- Ethereum value remains above the $260 threshold
- XRP ends at $0.28 and continues its bullish attempt to get beyond the $0.30 mark
- Tezos almost breaks the $4 barrier before dropping at $3.51
- Binance goes through unexpected maintenance work
- Concerns over the coronavirus continue to impact the Asian financial markets
Crypto Trends 17th – 23rd Feb 2020: PERFORMANCE & ANALYSIS
The last week has seen the cryptocurrency market go through an exciting rollercoaster ride.
Bitcoin charted a Golden Cross and subsequently ended its six-week gain ride. Ethereum fought hard to overcome the $285 barrier but lost. Tezos surprised everyone as it entered the top 10 cryptos for market capitalization. And, Binance sent a chill down the investors’ spines as the giant crypto exchange temporarily paused its activity.
Bitcoin’s six-week ascent comes to a halt as a 6% drop in market value saw it drop below the $10,000 mark. This event followed a Golden Cross, which marks its 50-day journey to cross over its 200-day moving average. It was the first one in 2020, and industry hopefuls expect a staggering increase in the upcoming weeks as a result.
The last time that Bitcoin went through a Golden Cross, it increased in value by 165% in just two months. For now, the most popular crypto in the world ends the third week of February at $9,855.
Ethereum continued its battle to overcome the $285 resistance barrier but saw its efforts diminished by an 8% price fall. In spite of the general optimism that investors have in its surge, there is a decent possibility that the bears will try to push the next support level at $255 and bring its value down.
For now, Ethereum trades at $270.
Bitcoin’s rise over the past weeks has influenced other altcoins as well. One of them is XRP, which uses an optimistic bullish surge to try and break the $0.30 barrier. At the moment, it is trading at $0.281, and it’s fighting hard to keep the bears away. A slump in form would see it drop below the $0.245 mark, which would make it difficult to recover.
Elsewhere, Tezos amazed everyone with its performance as it almost broke the $4 barrier. It stopped just short of it, and now it is trading at $3.51, but it is an impressive run for an altcoin that has a market cap worth little over $2.4 million.
What’s in the News?
- The coronavirus outbreak in China still impacts financial markets all over the world. But, the S. stock market and economy have remained the strongest globally.
- Binance temporarily suspends trading due to system messaging errors
- US Presidential candidate Michael Bloomberg announces potential cryptocurrency regulations to prevent a financial crisis
- Chinese exchange FCoin collapses after supposedly losing $125 million due to technical errors
- Vitalik Buterin makes promising announcements regarding the work in progress on Ethereum 2.0
Next Week’s Market Forecast
In the upcoming week, Bitcoin may consolidate its position and restart its ascent over the $10,000 mark. Traders are optimistic that a combination of comforting news from China and a rise in U.S. equities will help the bulls to take the crypto’s value over the $10,500 resistance peak.
The crypto market is looking with excitement at the weeks ahead. If Bitcoin continues its surge, it will drag most of the other altcoins with it. An increase in value for Ethereum and XRP is expected, and pleasant surprises like Tezos’ ascent should follow suit.
The Blockchain in Kyoto 2020 should have taken place next week in Japan. However, the organizers decided to postpone it amid concerns of the coronavirus outbreak in the region.