Following the moves by the various world regulators, various sites such as Twitter, Google and Facebook have been taking major actions against the cryptocurrencies and ICOs. This is in the advertising sector. In other news, Japan was involved in the closure of the major Bitcoin cryptocurrency trading exchanges in the country. Therefore, this might have contributed to the current situation.
However, the Bitcoin popularity is not based on the advertising and sharing in the various social media but is reliant on the underlying technology.
Let’s analyze the current dip in prices.
In the last 24 hours, there has been a lot of selling pressure. This has seen Bitcoin drop to the $7,000 price levels in hours. Investors are still in panic due to the various issues with regard to regulations and advert banning. Therefore, these issues have subjected the investors to sell their holdings in fear that BTC/USD might crash.
In the previous forecast, we said that another test would subject the cryptocurrency to the $7,800 price levels and lower. This is what has happened according to the current statistics. From the start of the week, Bitcoin has been involved in a dropping state until currently where it trades at $7.086.
The Twitter ban and also the closure of the two Bitcoin exchanges has really affected the market. According to the current trend, the investors should watch the $6,900, $6,500 and the $6,100 support levels. If BTC/USD falls below the $7,000 price level, it might further drop to the $6,500 price level. However, the bulls are trying as much as possible to push the cryptocurrency higher. On the other side, if the bull’s success, we expect BTC/USD to improve and move back above the $7,900 price level which is the current resistance level.
There has been a short-term increase in the selling pressure in the Ethereum market. According to the previous analysis, ETH/USD pair trades at the $453 price level. The cryptocurrency has been subjected to a fall with more than $60. At some point, it eve trades at the $375 price level. However, it is trading at the $405 price level currently, and this represents an improvement in price.
Therefore, a drop to the $375 price levels could subject to further drop to the $350 levels. On the other hand, since it has shown signs of an uptrend in the last few hours, it might be subject to improvement to the $450 levels. However, there has been a bearish formation in the $410 resistance level. However, above the $410 level, this could shoot to the $450 levels soon.
Therefore, the support level lies at the $350 price level, and the resistance level is at $410.
Due to the current selling pressure which has been initiated by the investors, this has pushed the prices down below the $750 support level against the US dollar. The price was involved in a huge decline and even reached the $700 level. Currently, the price is at the $761 price level.
However, Bitcoin Cash has been suffering bearish signs while below the $750 price level. Therefore, in case the cryptocurrency drops below the $740 price level, it might be subjected to the $700 levels. On the other hand, recovery is possible which might see the cryptocurrency rise to the $800 levels soon.
However, the major support level lies at the $650 price level, and the resistance level is at the $750 level.
Ripple has also been subjected to the huge sell-off which is affecting the major cryptocurrencies in the market. XRP/USD has been trading at the $0.50 level for quite some time now. In the previous forecast, we had suggested a fall to the $0.55 levels. The cryptocurrency has fallen further than this and reached the $0.52 levels.
According to the market, however, the support lies at the $0.50 level and the resistance at the $0.60 levels. Therefore, dropping below the $0.50 level might subject the cryptocurrency to a further fall to the $0.470 levels. However, on the other hand, an upward trend to the $0.55 levels might subject XRP/USD to the $0.60 levels.
IOTA/USD is still facing the bearish trend for the entire week. On 27th, IOTA.USD was subjected to a low of $1.16. The current low has gone below this point and went below the $1.10 level. In the previous analysis, we made a forecast that is going below the $1.16 price level might subject the cryptocurrency to the $1.10 level which has happened.
However, according to the market conditions, the IOTA/USD pair might further drop in prices once it goes below the $1.08 price level to the $1.00 level. On the other hand, once it gains the bullish trend, it might move to the $1.20 level soon. However, we don’t recommend any trade in the cryptocurrency.
Litecoin has also suffered the current drop in prices. It has adopted a bearish sign from the start of the week. During the previous analysis, it had attained a low of $133. Currently, it has been subjected to a further fall in prices and currently is at the $122 price level.
Therefore, a further drop in prices might subject the cryptocurrency to the $115 price levels. On the other hand, an improvement to the $125 price levels might mean that the cryptocurrency might pick to the $135 level soon.
NEM has been trading at the lowest levels this week. According to the current NEM price $0.225, this represents a slight fall in prices from the previous level. In the previous analysis, we suggested a drop to the $0.23 levels. This has been the case, but XEM/USD has dropped further.
Therefore, a drop below the $0.20 levels might subject the cryptocurrency to the $0.18 levels. On the other hand, an improvement to the $0.25 levels might subject the cryptocurrency to the $0.28 level soon.
Cardano has been the weakest cryptocurrency in the market. The ADA/BTC pair now trades at the 0.0000145 level according to our previous analysis.
We are still not sure of the next ADA/BTC move, but we hope that the market conditions might be favorable to the cryptocurrency.