Analysis: Ugly day for cryptocurrencies; Bitcoin and Ethereum on the defensive
InvestingOnline.com
11/07/2018, 01:37Cryptocurrencies closed Tuesday with big losses as major cryptos broke significant levels and moving averages pointed more bearishness or at least the lack of bullish stamina. Also, Token platform Bankor reported a $13.5 million hack on Monday.
According to Bankor, the platform lost about $12.5 million worth of ether and $1 million of NPXS tokens. They blocked the transfer of $10 million value of BNT also. “It is not possible the freeze the ETH or any other stolen tokens,” Bancor affirmed in a press release.
“We are now working with dozens of cryptocurrency exchanges to trace the stolen funds and make it more difficult for the thief to liquidate them.”
Bitcoin fell strong to 6,280 and closed below the 20-day moving average
BTCUSD daily chart July 11
The crypto king closed negative on Tuesday for the third day in a row as the pair remains contained by the 50-day moving average now around 6,835. On Tuesday the decline was strong, and it drove the unit to break below the 20-day moving average at 6,380, and it closed at 6,303.
On Wednesday, BTC/USD is trading 1.21% positive at 6,379. The pair is now testing the 6,250 area, the last frontier before the 6,000 area and the 5,780 significant support.
Ethereum returns below the dynamic support and closes at July lows around 430.00
ETHUSD daily chart Jul 11
Ethereum is trading positive on Wednesday after declining for two days on Monday and Tuesday. ETH/USD lost 13% since Sunday peak of 484.75 to Tuesday low of 427.90. It is now trading 1.50 positive at 439.20 on Wednesday.
Technical conditions suggest the downside. Moving averages are pointing to the south while momentum indicates more bearishness in the short term. The cross is now testing the 419.50 level before facing the 402.00 crucial area.
As a context, Ripple logged three negative days in a row as the 20-day MA contains it.
