The broader cryptocurrency is coming under increasing downside pressure, as recent bearish fundamental developments weigh on the price of digital assets. Bitcoin continues to trade below the $8,000 level, while the total market capitalization of the entire cryptocurrency market edged closer to the $200,000,000,000 level.
Weaker-than-expected Bitcoin trading volumes from the newly introduced Bakkt futures trading platform has weighed heavily on market sentiment this week. Bakkt futures trading participation has seen a marked decline following a short-lived spike in futures volumes last week.
A number of security breaches have also been reported this week, which has further weighed on cryptocurrency market sentiment. Last week, the U.S Securities and Exchange Commission rejected Bitwise’s Bitcoin ETF proposal, with the U.S regulatory stating that they denied the application due to security and manipulation concerns.
The cryptocurrency market has been on a downward spiral since Bitcoin and the total market capitalization of the entire cryptocurrency broke below their 200-day moving averages last month. Bitcoin is on course for its fourth-straight monthly decline, while the entire cryptocurrency market has lost around $20,000,000,000 in value in just one week.
Top cryptocurrencies such as Ethereum, Litecoin, and Ripple have continued to track Bitcoin lower, with Ripple actually turning negative for the year. While Bitcoin has recently been coming under heavy downside pressure, it is worth remembering that the cryptocurrency still trades higher by around one-hundred percent since the start of 2019.
XRP/USD Daily Candlestick Chart | Source: ActivTrader
Ripple is bearish while trading under the $0.3000 level and still risks a deeper decline back towards the $0.2350 support region. Strength above the $0.3000 level would encourage medium-term XRP/USD buying, leaving the $0.3500 and $0.4300 levels as potential upside targets.
Written by Nathan Batchelor, External Analyst, ActivTrades
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