Cryptocurrencies are opening the week with a weak note after falling across the board throughout the weekend. Bitcoin, Ethereum, and Bitcoin Cash are consolidating lows since mid-April.
Most of the cryptocurrencies are trading lower since early May as market confidence in the crypto sphere was damaged after several news hit the wires about “mala-praxis,” regulation and criminal probes.
Investors got concerned from the initial Mt Got sell-off, its hack, the US Justice Department criminal probe amid price manipulation, the South Korean exchange Upbit that was investigated by the Financial Supervisory Commission in Korea, and Bitfinex’s to ask Tax IDs and social security numbers to its clients to share with the British Virgin Islands added a toll for cryptos.
All those news hurt cryptos, and the market started a multi-currency downtrend. However, bitcoins, ethereums, and friends have believers yet.
Bitcoin still a buy
Blockchain venture capitalist Spencer Bogart affirmed in a CNBC interview that despite all the losses in the last days, bitcoin is still a great investment opportunity.
Bogart highlighted that every major bank or financial institution “is trying to do something in the space,” and a deeper “institutionalization of bitcoin is overall positive.”
Bitcoin is still a buy. Many cryptos are “over-promising and under-delivering. Meanwhile, you have a few that are kind of excelling in their use cases. Bitcoin is one of them.”
The experts also assumed that bitcoin could trade lower, “but do I think it will be higher a year from now? Absolutely.”
Bogart said, finally, bitcoin cash, ethereum, ripple, and EOS are “holds” for now.
BTC/USD trades below the dynamic line of 7,430
The crypto king is trading slowly negative on Monday around 7,350 as the unit is consolidating levels after the recent decline.
BTC/USD traded negatively over the weekend with the pair falling to price as low as 7,230, the lowest level since April 12. Bitcoin managed to bounce off minimums but it was unable to recover above the dynamic support line that comes from September 2017, and it is now at 7,445.
If BTC/USD consolidates levels below the line, next supports come at 7,000 and the crucial 6,600.
Expectations for recovery are very limited as the pair remains now below the 7,630, 8,000 and 8,600 areas. However, if the unit clears up those levels, next resistances are at 8,800, 9,000, and 9,500.
ETH/USD Breaks below the 560.00 level
Ethereum opened the week with a substantial decline that drove the pair to break below the significant 560.00 level and to trade as low as 517.00, its lowest level since April 18.
ETH/USD is now trading at 530.00, 7.15% down on Monday. The pair is now focusing on the 500.00 level. Technical indicators are pointing to the downside in the daily and 4-hour charts.
If the pair breaks below the 500.00 level, it will find new buying areas around 450.00 and 400.00.
To the upside, the pair needs to recover the 560.00 area before thinking about a trend change. Above that, 615.00 and 640 are essential levels.