It has been a bearish start to the week for Bitcoin. Altcoins had a mixed performance at the start of the week with some recording significant gains and others showing losses. Today’s price action has been the most bearish for the market leader Bitcoin and has resulted in altcoins undergoing sharp declines.
The largest altcoin by market cap, Ethereum, has far underperformed Bitcoin so far this year. To date, Bitcoin has lost 55% of its value this year whereas Ethereum has lost 73%.
Recent price action was looking as if Ethereum had reached its bottom with the price forming higher lows since September. Today’s drop breaks the series of higher lows and brings Ethereum back below the key $200 mark. Ethereum is currently trading around $190 with its 2018 low being about 1% away at $170.
There is high volume behind today’s move in Ethereum showing real strength to the sellers. Today’s candle is also forming as a Marubozu candle. A Marubozu candle is a candle with a long body and little or no wicks showing strong movement in one direction.
The market leader Bitcoin is now approaching the important $6k level. With Bitcoin holding over 53% of the cryptocurrency market cap, a break below $6k for Bitcoin will very likely result in sharp declines across altcoins including Ethereum.
- Ethereum breaks a series of higher lows which has been forming since September and returns below $200.
- Today’s movements in Ethereum are strongly bearish with high volume behind the move and a Marubozu candle being formed.
- Ethereum currently trading around 1% from its 2018 low.