A number of the major cryptocurrencies and also a large number of altcoins were left reeling after suffering what many have called Bloody Sunday. Having experienced some massive gains in value so far in 2020, many of these cryptocurrencies were hit with sharp losses as many now fear they could be tumbling into bear territory.
Ethereum and Ripple dropped close to 10% while Bitcoin suffered losses of about 8% over the weekend. While these losses are not normally anything to worry about, many analysts think that things might get worse before getting better as many have not recovered their losses.
Despite a solid start to 2020 so far, with ETH more than doubling in value up to a high of $285, many feel that the bears are taking over as it suffered a sharp plunge in value to the tune of 8%. This took it down below the $250 support with analysts noticing a major bearish trend line forming.
Those analysts fear that should ETH fail to recover those losses to move back above $260, that there is a strong possibility of further losses in the days ahead. In fact, commentators have suggested that should ETH fall below the $240 support area, we could be looking at further support levels around the $235 mark.
While Bitcoin has been posting large gains in 2020, many altcoins have actually had some even bigger gains. In a twist of fate, however, the losses that these altcoins are now suffering are also bigger than the big-name cryptocurrencies. We have already mentioned the current woes of ETH but EOS, XRP, BSV, XTZ, and TRX all experienced sharp drops in value over the weekend. The biggest of those was 11.93% and 10% losses of Bitcoin SV and Tone respectively.
Like ETH and many other major cryptocurrencies, Bitcoin also enjoyed a strong start to the year. In the first couple of months, it gradually increased in value by around 25% taking it up as high as $10,355. In the last few days, it would seem that this gradual increase is starting to tip the other way with predictions of further losses coming the way of BTC.
BTC dropped 300 against the USD in less than an hour on Sunday before dropping to a low of $9,700 throughout the next day. It was Saturday when BTC actually dropped below the $10,000 level and that signalled further losses throughout the next day.
Because BTC was unable to stay above the $9,800 support area and instead closed in on the $9,600 support, analysts believe that if BTC were to fall below $9,500, we could be looking at a run down to $9,000.
One saviour might just be the CME Bitcoin futures market which only just recently opened. CME accounts for a large chunk of the daily trading of BTC and because it is closed on the weekends, many believe that this could be a reason for the increased volatility of the markets on the weekends.
On the busiest days, it is not uncommon to see half a billion dollars in settled contracts on the CME. Therefore, there has to be more than just coincidence involved here. As soon as the CME closed on Friday, the price of BTC dropped 8%. Then, as the following tweets show, the price of BTC once again shot up to close to $9,900.
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