Cryptocurrency market saw mixed price action today. Out of top 10 major cryptocurrencies, 7 managed to trade positive in later European market hours with Bitcoin one of the three coins suffering decline. News of profit warning from Chip-making giant Nvidia and fears of a possible hack as Canadian crypto exchange QuadrigaCX exchange went offline added to investor worries and resulted in major crypto’s making a bearish dive during Asian market hours. While the market is still yet to recover from news of New Zealand’s crypto exchange cryptopia losing several million dollars worth of digital coins, QuadrgiaCX exchange going down along with its website for several hours in name of maintenance added to investor’s worries. Customers have not been able to withdraw their funds and crypto assets from their account in QuadrigaCX for a few months now as it is currently locked in legal battle with Canadian bank CIBC.
Bearish Factors Continue To Pile Up in Cryptocurrency Market
As bearish factors keep piling up in market one after another, it looks like bitcoin is set to enter another sharp bearish nose dive similar to events in the second half of 2018 which saw the all major assets lose their worth by several billion dollars. During Asian market hours today, Bitcoin fell below $3400 mark and hit an intra-day low of 3369.19. While the price has recovered back above $3400 handle, the scenario suggests that supply at $3400 handle is very less and with enough push, the support level could see an irreversible breach that could push the pair back near 2018 lows at $3100 price levels. As of writing this article, BTCUSD pair is trading at $3422 up by 0.46% on the day while ETHUSD pair is trading at $105.60 up by 1.74% on the day.
While Ethereum also saw sharp declines earlier in the day, it managed to limit its losses significantly. The intra-day lows ETH/USD hit today is well above previous session lows which suggests that Ethereum still has strong demand is market and there is enough supply on the downside to prevent it from falling below $100 handle anytime in near future. While the current scenario is interpreted in broad market as increased buying activity with enough clout to outperform bearish influence in the market, for sustained bullish price rally the asset needs to breach strong resistance at $110 handle. But given the current market scenario, the most that can be expected out of Ethereum is for the currency to move range bound inside a range of $102 to $107 respectively.