Double-digit decline. Where to now? – BTC, ETH, LTC Price Analysis, 2 Mar, 2020
During the past week the cryptocurrency market was quite volatile and most of the major cryptocurrencies recorded double-digit price declines. For instance, the price of Bitcoin dropped from €9,190.36 to €7,724.02 (-15.96%).
Usually, in such cases, when the prices of financial assets increase or drop significantly many media outlets try to explain the reason behind it or what the next trigger will be. But, not all experts consider such kind of explanations as reliable enough. For example, on Friday, Feb 27th, the prominent programmer Vitalik Buterin, a co-founder and inventor of Ethereum, wrote the following tweet:
And, although last week the crypto market dropped without any obvious negative fundamental reason, we can still point out some positive news for the cryptocurrency industry that will pave the way for the crypto mass adoption in the long run. For example, Litecoin Foundation announced a new partnership with MeconCash. The partnership will allow Litecoin (LTC) to be withdrawn to Korean Won (KRW) at over ATMs in South Korea.
After the solid price drop during the past week, the Monday crypto market is still currently struggling to stabilize. At the time of publishing, according to Coin360.com, one Bitcoin costs €7,836.69 (+0.92%), one Ethereum – €200.75 (+0.51%), and one Litecoin – €53.09 (-0.71%), so let’s have an in-depth look at each of the top cryptocurrencies against the euro.
Daily crypto market performance. Source: Coin360.com
On the 1-month chart (M), BTC/EUR formed a «Shooting Star» candlestick pattern in February:
According to the technical analysis theory, a «Shooting Star» formation signals that bearish sentiment is forming on the market. However, to be considered a strong bearish signal, the «Shooting Star» candlestick formation must be followed by another bearish candlestick, preferably with a solid body.
In addition, we have to keep in mind that before the «Shooting Star» there is a «Bullish Engulfing», which, on the other hand, is one of the most reliable bullish reversal patterns. That’s why we don’t expect any clear price direction in the near future. Probably, the market will remain quite volatile in the next few weeks.
On the 1-week chart (W), last week ETH/EUR formed a solid «Bearish Engulfing» candlestick pattern, after having reached the level of the previous local high or approximately €270:
In our view, in the next few weeks ETH/EUR may try to resume the upward movement and to advance towards the level of the previous local high again. But, it is important to outline that at the moment there isn’t any buy signal.
On the 1-month time frame (M), the price chart of LTC/EUR looks like the one of BTC/EUR. There is a solid «Bullish Engulfing» candlestick pattern followed by a «Shooting Star»:
In our estimation, the price of the «Digital Silver» (Litecoin) will follow the price dynamics of the «Digital Gold» (Bitcoin) throughout the week.
Overall, it is still unclear where the crypto market will head to. So stay tuned for our next price analysis and everything Bitcoin-related with Bitvalex. Bitvalex is a licensed digital wallet and cryptocurrency exchange; learn more about us and blockchain technology and sign up to use our services.
The analysis is purely informational and does not constitute investment, financial, trading, or any other sort of advice and you should not treat any of Bitvalex's content as such. Bitvalex does not recommend that any cryptocurrency should be bought, sold, or held by you. You are solely responsible to conduct your own due diligence and consult an advisor before making any investment decisions.