Modest gains for cryptos as analysts ponder next breakout
Cryptocurrency prices moved broadly higher on Thursday, although gains were only modest following losses seen earlier this week.
Importantly, however, most recent losses have not matched the severity of those seen during the sharp summer sell off across late-July to mid-August, and then again in early September.
Furthermore, the total market capitalisation of the cryptocurrency sector has remained above the $200bn for nearly three weeks after dipping as low as $192bn on 11 September.
Indeed, this week volatility in bitcoin – the largest cryptocurrency by market cap – fell to a 15-month low, having traded in a range between $6,200-$6,800 for the past month or so.
Analysts are divided, however, on which way the next breakout from this range will go.
John Isige, analyst at FXStreet, believes technical analysis shows the cryptocurrency is primed for gains. He says: “The bearish trendline has been limiting upside movements since the first week of September. It is, therefore, a fundamental level that bulls must focus on for more gains.”
Quoted in Britain’s Express, crypto enthusiast Nikola Lazic predicts a downside breakout. Trendlines have recently been broken, he says and if the “last support gets broken then we are definitely seeing a lower low which would be below $5,767.”
The modest gains seen on Thursday, however, gave no clues either way.
Price round up
Here’s how the top 10 cryptocurrecies stood at 11.15am [London time]:
- Bitcoin +1.7% at $6,603
- Ethereum +2.1% at $223.85
- Ripple XRP +1.4% at $0.54
- Bitcoin cash +1.6% at $525.27
- Eos +1.8% at $5.69
- Stellar lumens +0.6% at $0.25
- Litecoin +1.3% at $58.73
- Tether unch at $1
- Cardano +1.7% at $0.08
- Monero +0.5% at $114.32