1| Top news this week
Crypto traders speculate on what caused the massive drop earlier this week
Earlier this week a substantial drop for the price of Bitcoin was seen as it briefly tested below 4k support. A similar situation was seen with the rest of crypto, therefore, causing panic in the crypto community.
Consensus 2020 will only be held online
One of the largest global cryptocurrency and blockchain-focused events – Consensus has announced that this year no physical conference will be hosted due to concerns of coronavirus outbreak. Instead, it will be available free of charge online. Ticket holders will be refunded withing the next 2 months.
Bitcoin Batching is introduced by Coinbase
One of the industry leaders- Coinbase has announced that they will start grouping Bitcoin transactions together before sending out. This is done to put less strain on the blockchain and will result in a reduced transaction fee for customers.
2| Technical analysis of Crypto majors
Bitcoin has a market cap of 99.15 billion USD and trades around 5,426 USD on Coinbase after a very large drop was seen earlier this week. This has resulted in a total drop of slightly more than 63% from the previous major high of 10,522 to the new major lower low of 3,858.
Therefore, previous hopes of the overall trend reversing are technically invalidated. However, the price did reject back above 4k USD and currently consolidates around 5.4-5.4k USD area. This will likely lead towards further upside this week as the price looks to retrace some of the loss.
A potential area where a very strong resistance could be found can be seen around 7.5-8.5k USD as it is the area where we can see 61.8% Fib retracement, both 100 and 200 day moving averages that are seen on the chart as a blue and green line respectively, and previous major support/resistance level of 7.7k USD.
Ethereum currently has a market cap of 13.945 billion and trades at 126.66 USD on Coinbase as the price experienced similar price action as Bitcoin. This has resulted in a new lower low being set below 116.2 USD previous one as the price briefly touched 90 USD mark.
Since then, a consolidation around 120-130 USD can be seen. This likely indicates an upcoming retracement back to the upside as the market seeks to regain some of the loss seen during the past weeks. A potential area of resistance can be seen around 180-220 USD as several key technical levels are located there and would mean a healthy retracement of around 50% from the previous downswing.
Ripple currently has a market cap of 6.78 billion and is trading around 0.154 USD on Coinbase as it has traded in the same way as Bitcoin and Ethereum for the past weeks. This has resulted in a new yearly low of 0.1105 USD.
The market has lost around 68% from the previous high of 0.3478 to a low of 0.1105 USD. Further, it has shown signs of further downside rejection with a bullish pin-bar close on the 13th of March. Therefore we can expect a retracement in the upcoming week with a potential area of resistance located around 0.22-0.26 as several key technical levels are seen around this area.
3| Crypto of the week
UNUS SED LEO (LEO) currently has a market cap of 0.95 billion and is trading around 0.956 USD on Bitfinex as it managed to stand its ground during the overall market crash last week.
Leo has been steadily trending since the beginning of the year after a bottom was found around 0.805 USD. Since then the market has gained almost 29% to the high of 1.04 USD and several month steady retracement was seen afterward.
A new higher low was set right on the previous resistance of 0.91 USD as a third touch of the several month trend line was seen and has clearly confirmed it. Last week we saw an attempt to break below this trendline, however, the price rejected any attempts to move below 0.94 USD during the market panic.
Therefore, LEO has demonstrated strong price action during overall market panic and we can expect the price to move higher in the upcoming weeks.