Ethereum, at three-month lows, Dogecoin plummets and Bitcoin sales continue

cryptocurrencies sales

The new wave of sales in the cryptocurrency market on Sunday and Monday, due to the greater Chinese grip on companies that work with crypto assets, have no signs of slowing down as the bitcoin charts confirm a sinister technical signal, known as ‘crossing of death’, while the price has broken $30,000 and marks a minimum of six months. All in all, the creation of Satoshi Nakamoto shares the limelight with ethereum, which hits a three-month low and loses $2,000.

The second coin by market capitalization closed below $1,900 on Monday, price levels not seen since March 31. The fall is 7% in the last 24 hours and 25% from a week ago to prices at $1,800. Gone are the highs above $4,000 in mid-May, just before the tremendous market correction that unleashed then.

The fall of ether, as the native currency of the Ethereum network is called, has affected thousands of ‘altcoins‘, most of which are based on this blockchain and have a part of their value weighted in ether coins. As for dogecoin, it leaves a brutal cut of more than 30%, to $0.17. This is a huge drop from its stratospheric high of $0.70 in April, the entire market is down 6%, according to CoinMarketCap and the capitalization is just over 1.3 trillion.

Cryptocurrencies Future

The reason behind this new drain on digital assets is, again, China. Cryptocurrencies have come under pressure in recent weeks as the Asian giant has taken steps to slow down from mining to trading. After getting miners from at least five provinces to shut down in recent weeks, the People’s Bank of China (PBOC) has further tightened the fence with an absolute veto on national banks and the platform. Ant Group Co.’s Alipay payment services provide services related to virtual currency trading.

However, bitcoin enthusiasts have taken to comparing the cryptocurrency with Google, the price of which continued to flourish after being banned in the People’s Republic of China in 2010. Their argument is that China neglects cryptocurrencies at its own risk and expense, and that this will be positive in the long term for the United States.

“The cryptocurrency market is guided only, at this time, by the crackdown on mining and trade in China that began in May,” wrote Michael Saylor, CEO of MicroStrategy in a note on Twitter. “This creates a hasty and forced exodus of Chinese capital and mining from the bitcoin network – a tragedy for China and a long-term benefit to the rest of the world,” he said.

Anthony Scaramucci, for his part, has also opined, via Twitter, that the Chinese veto on bitcoin is “negative in the short term but positive in the long term.

THE FAMOUS CROSS OF DEATH

However, in the immediate future, the outlook is bleak for ‘cryptos’, especially for bitcoin, as its charts confirm a technical signal that has been long anticipated by many analysts in recent days.

The cryptocurrency has formed a ‘death crossover’, meaning that its median price over the past 50 days fell below its 200-day moving average. The indicator is normally considered a closely watched technical measure that could offer an indication that more pain is to come.

Many analysts had anticipated that the currency, amid a recent slide that has seen it lose 40% in the past two months, would form the grim pattern.

But there is reason to believe that the formation this time around might not be such a bearish sign, given that the 200-day moving average continues to rise, according to Matt Maley, chief market strategist at Miller Tabak + Co. it will be more convincing, “he said.

In fact, the last time bitcoin marked this technical signal, in March 2020, it did not prove to be an impediment to earnings, as a rally began that ended up shaping a ‘golden cross’ (when the pattern is reversed ) two months later. But the ‘death crossover’ in November 2019 caused the coin to trade lower a month later.