- Bitcoin dived to $16,350 after investors rushed to withdraw funds from OKEx cryptocurrency exchange.
- Ethereum struggles to hold above $500 following a dip to $480 amid the widespread selloff.
- Ripple holds onto support at the 50 SMA on the 4-hour chart; consolidation is likely before another breakout.
The cryptocurrency market has painted red on Thursday during the European session as traders and investors have started taking profits. As discussed earlier in the day, a correction was around the corner, mainly due to the cryptocurrency fear and greed index at a record high.
Bitcoin has dumped from the yearly high at $19,500 to exchange hands at $16,350. Ethereum is also bleeding profusely after losing 15% of its value in the last 24 hours. Ripple is the worst hit among the top three, with losses amounting to 24%.
The rest of the cryptocurrency market is in losses, as reflected by the slump in the total market capitalization from the monthly peak at $582 billion to $496 billion at the time of writing. The selloff was likely triggered after OKEx exchange resumed withdrawals. More than $50 million in Bitcoin has already left the exchange as investors rush to get their funds.
Bitcoin massive selloff could be unstoppable to $15,600
Bitcoin is under intense headwinds with losses extending below the most crucial level at the 50 Simple Moving Average on the 4-hour chart. Bitcoin had not traded below this moving average since the beginning of October, during a continued uptrend.
The breakdown failed to find support at the 100 SMA and losses have stretched to a weekly low of $16,350. BTC/USD is doddering at $16,750 amid a developing bearish momentum. The bearish divergence pattern formed by the Relative Strength Index also validated the downtrend. Bitcoin could extend the bearish leg to the 200 SMA before recovery comes into play.
BTC/USD 4-hour chart
Ethereum price downside eyes $450
Ethereum has broken down significantly from the new yearly high traded at $620. Ether is trading at $502 at the time of writing. The bearish leg has tested $480 on the downside, but a reflex recovery pulled the smart-contact token upwards.
If Ethereum failed to close the day above $500, and it is likely to resume the declines under the 100 SMA. Apart from the buyer congestion at $480, the next formidable support is the 200 SMA slightly above $450.
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ETH/USD 4-hour chart
The RSI has dived into the oversold area, which means that selling pressure is intense at the time of writing. However, oversold conditions also suggest that volume is going down a reversal is possible. Besides, closing above the 100 SMA and $500 would see stability return to the market, paving the way for gains towards the 50 SMA at $540.
Ripple must hold this critical support to resume the uptrend
Ripple’s flash spike to $0.92 earlier this week has been unsustainable. Initially, support was embraced at $0.55, but the recovery could not go beyond $0.75. On Thursday, the widespread selloff in the market extended the losses below $0.5 before the downtrend took a pit stop at the 50 SMA.
In the meantime, the cross border cryptocurrency is trading at $0.51 as bulls work extraordinarily hard to resume the uptrend that had eyes on $1. Therefore, it is essential to hold the price above the 50 SMA, which could help keep the focus on higher levels. Buyers must also prepare for a likely delay at $0.75 (short-term resistance).
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XRP/USD 4-hour chart
Support at the 50 SMA is vital to the bulls as they focus on lifting Ripple to $1. On the other hand, trading below the crucial level could trigger losses to the 100 SMA at $0.35 and 200 SMA at $0.3, respectively. If technical indexes remain intact, the RSI shows that a sideways trading action may come into the picture in the short term ahead of another breakout.