Tuesday, August 16

New strain of Covid-19 beats bitcoin and ethereum: cryptocurrencies hit lows

Major cryptocurrencies crash this Friday before the panic that is invading investors after learning of the appearance of the new South African variant of Covid-19. The bitcoin falls 8% and is at its lowest since the beginning of Octobere, below $ 54,000. It would be his biggest drop in one day since September 20.

Technically goes into downtrend since it is already down more than 20% from its last highs, marked at $ 68,891.

Just yesterday, the bitcoin it bounced and tried to hit $ 60,000 but failed.

For his part, ethereum, which had been performing better than bitcoin all November, today falls harder, losing almost 13%, marking a low of $ 3,920.

Risk assets

It is once again clear that cryptocurrencies, despite their success as a financial asset, do not function as a shelter from financial storms, something that we had already commented.

Its movement has paralleled the stock markets, and other risk assets, at all times. Its collapse is due to its greater volatility but the trend is the same as that of the stock market, and the reasons for its fall are the same: fear of the new variant of the virus.

Thus, it is logical to think that they will bounce if the bags bounce. In any case, our analyst E. Bolinches He gives us his point of view below:

The bitcoin It returns to prices that we have not seen since the beginning of last October and threatens the life support of $ 53,550.

This level is key because it would emphasize the pattern of decreasing highs and lows that has been developing the evolution of its price since it marked maximum on November 10 at 68,989.61 dollars.

This would open a testing scenario for the psychological ones of $ 50,000 where testing the 48,400 would be very easy, taking advantage of the weekend hiring that is always very volatile. However, this continuity scenario would only occur if we see a close below $ 53,550 today.

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Bitcoin price evolution

Eduardo Bolinches

ProRealTime

Regarding the ethereum the technical aspect is not so worrying since the stock has not been developing a pattern of decreasing maximums but rather is lateral.

That lower part of the range passes through the zone of $ 3,960 and, although it has been lost in intraday format, it has been recovered again, which suggests that there are buyers willing to buy at these prices.

In fact, the support in this level is more important than we think because, as we can see in the following graph, it is a pivot point, having previously acted as resistance at the beginning of last September.

Ethereum price evolution

Ethereum price evolution

Eduardo Bolinches

ProRealTime

Reference-www.elespanol.com

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