Virtual currencies, led by Bitcoin, have been mired in a downtrend spiral in recent weeks, losing up to 50 per cent since record highs of mid-April.
New Delhi: Major Cryptocurrencies continued to trade lower on Wednesday. However, the cuts were marginal and seven top 10 digital currencies lost up to 2 per cent at 9.30 hours IST. Crypto market has remained tepid in the last 24 hours.
Virtual currencies, led by Bitcoin, have been mired in a downtrend spiral in recent weeks, losing up to 50 per cent since record highs of mid-April. Tweets from Tesla boss Elon Musk and regulatory curbs from China have turned investors anxious.
Meanwhile, American traders locked in $4.1 billion in profits trading Bitcoin last year, three times more than the next highest country, according to estimates from Chainalysis. It is followed by China, Japan, UK, Russia and Germany.
“We witnessed a typical high volatile crypto market in the past 24 hours. At some point during the day, major cryptos fell more than 10%. However, they largely recovered later during the session. It is undoubtedly going to be an eventful week,” said Edul Patel, CEO and Co-founder, Mudrex.
Amid Bitcoin’s decline this week, eagle-eyed chart-watchers noticed an ominous-sounding technical breach and the coin is approaching a bearish pattern known as a Death Cross. The world’s largest digital currency has slumped, pushing its average price over the last 50 days close to its 200-day moving average.
ZebPay Trade Desk’s TechView
ChainLink was founded in 2017. It acts as a blockchain abstraction layer that allows for universally connected smart contracts. It is based on a decentralized oracle network, which allows blockchains to securely interact with external data feeds, events, and payment methods. This provides the critical information that is required by complex smart contracts to create dominant digital agreements.
Chainlink, post making the low of $15 has witnessed a sharp relief rally and surged almost 135% upto$35.4. However, the asset struggled to keep the momentum going, and hence, the prices have retraced from these levels. Technically, Link is trading in a downtrend making a ‘LowerTop Lower Bottom’ formation pattern.
On the daily time frame, the asset is trying to take support around $21 levels as the candle made longer lower shadow indicating some buying at these levels. If it sustains the support level then we can expect some recovery, else we may see a further downfall and the prices may slide to the next support level of $19.5.
Support: $21.39 and $19.5
Resistance: $33 and $28.6
Time is in UTC and the daily time frame is 12:00 AM – 12: 00 PM UTC
(Views and recommendations given in this section are the analysts’ own and do not represent those of ETMarkets.com. Please consult your financial adviser before taking any position in the asset/s mentioned.)
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