Cryptocurrencies had been involved in gradual recovery in prices. Bitcoin was eyeing the $12,000 level some days back. However, this was not possible. For the last 4 days, there has been a huge sell-off in all the major cryptocurrencies. However, there are a number of reasons which could have triggered the sell-off and fall in prices.
Google announcement has played a major role in the current fall in prices. This is since there has been a high sell off after they banned all the cryptocurrency related ads, the advertising of crypto wallets and also trading advice. Another reason could be due to the sell-off by Mr Gox which amounted to $400 million.
Finally, Japans regulation has also been imperative to the market which was initiated because of the $500 million coincheck hack.
Let’s find out the current situation of the major coins.
Bitcoin has been enjoying a recovery mode from the lowest point in February. However, the last two days have been rough on the cryptocurrency. In the previous analysis, we were not sure of the next market move. For the last 2 days, we have experienced a drop in Bitcoin below the $7,800 level. Recalling from the past, dropping below the critical support level signifies more drop in prices.
According to our view, dropping below the $7,800 level would lead to a fall to the $6,000 levels. However, this is not the case as Bitcoin has recovered slightly. The possibility is that with these market conditions, we might see Bitcoin drop to the $6,000 levels just like in January which would initiate buying.
Currently, there is a high sell-off in the market. However, we are certain about the various factors which have contributed to this such as the sell-off by Mr Gox which amounted to around $400 million. Additionally, Google announced and initiated the ban in all the cryptocurrency related ads, advice to the market and also price listings. This was the major reason and factor which contributed to this drop in prices due to the sell-off. Other reasons could be due to the regulation revisiting in Japan.
Bitcoin currently trades at the $8,240 level. In case it experiences a drop below the $8,000 support level, this means that we might experience further drop below the $7,000 levels. On the other hand, with better market conditions, the cryptocurrency might improve slightly with $9,000 being the resistance level.
With the current market correction, Ethereum has not been left out. On March 14, Ethereum was trading at the $691 level. However, in the past two days, the cryptocurrency has been experiencing a drastic fall in prices below the $600 level. On March 15, it was trading at the $581 price level. However, it has been involved in a slight recovery to the $610 price level.
Previously, the support level was at the $600 level. Therefore, Ethereum dropped below the support level. This is due to the current ban on cryptocurrency ads on google. This is why there are huge sell-offs in the market triggering fall in prices.
With continued correction, if Ethereum drops below the $600 support level, we might experience a drop below the $500 level and further to $450. However, with good market conditions and initiated purchasing, Ethereum might improve towards the $800 resistance level. We do not advice on any trade to take place.
Bitcoin cash has been struggling to recover to the previous bull’s support level of $1,150. However, from March 14th, this has not been possible since the cryptocurrency dropped below the $1,000 price level to the $900 level. On March 15th, it was trading at $891 but has slightly improved to the $919 level.
We believe that this is due to the ban of cryptocurrencies on the google search engine. Therefore, if bitcoin cash drops below the $900 support level due to the current market correction and regulations, further drop to the $800 levels might be experienced with time. However, trading above the support level for some days might subject the cryptocurrency to an improvement in price towards the $1,000 level. We do not recommend any buying whatsoever.
Ripple has also not been left out in the current drop in prices. During the previous analysis, ripple traded at the $0.787 level. This is before it was subjected to a fall in price to the lowest level this month of $0.65 on March 15.
Ripple has since improved slightly to the $0.700 level. Further fall below the $0.65 level would translate to a fall below the $0.60 level. However, with the end of the market conditions, we expect the cryptocurrency to improve above the $0.80 levels in a few days.
IOTA has just been trading above the $1.20 for some time now. However, this has not been the case in the last two days since it dropped below the $1.10 levels. It currently trades at the $1.09 level, and this is a drastic fall from the $1.36 levels.
Continuous market correction might see IOTA drop further to below $1.00 level. However, with better market conditions, the cryptocurrency might improve to the $1.20 levels in some few days.
During the previous analysis, Litecoin was trading at the $173 price level. This was a slight drop from the $186 price level. However, on March 15th, Litecoin dropped below the $160 level to $151. However, it has since improved slightly to the $162 level.
With prolonged negative market conditions, Litecoin might further drop below the $160 level. However, with the end of this correction phase, we expect the cryptocurrency to improve gradually back to the $180 levels.
During the previous analysis, NEM had experienced a recovery in prices from the $0.34 level to the $0.5156 level. However, with the current market conditions, the cryptocurrency has fallen back to the $0.361 levels.
Therefore, further correction might subject the cryptocurrency to drop to $0.30 level. However, with better conditions, it might improve back to the $0.50 levels.
Being one of the weakest cryptocurrency in the market, Cardano has not been left out in the current fall in prices. It has dropped from the $0.0000221 levels to the $0.0000181 levels in just 2 days.
We are still not certain about the next move on Cardano as continuous correction and regulation might see the cryptocurrency drop to the $0.0000160 levels in some days. However, we hope for the best in the market.