Cryptocurrency market is experiencing low volatility

General overview

Market Cap: $326,535,690,890

24h Vol: $18,390,671,352

BTC Dominance: 41.3%

Nothing has changed much in the last 24 hours. Market capitalization has been standing relatively still.

The day started off with around 325B, and in the period of 12 hours, we had another 5B coming to the market, only to get back in on the same levels as on the beginning of the day.

 

News

There is no significant news that can impact the market in a great way. Dominant headlines are mostly analytical in nature.

Sharia, Taxes, and Short Squeeze: Versions Behind Bitcoin’s $1000 Bounce

Forbes financial analyst Charles Hayter suggested that the spike was due to what is known as a ‘short squeeze’ on the Bitfinex exchange. In layman’s terms, a short squeeze is caused by a turnaround in a stock’s price which forces short sellers to close their positions which in turn forces the price of a stock even higher.

Source: Gareth Jenkinson, April 17. Cointelegraph.com

Analysts Expect Bitcoin in Bullish Mode After ‘Tax Day’

Tax-selling has been a significant factor in downward crypto prices over the past few weeks. I would expect this downward pressure to abate after tax day,”Blockchain Capital co-founder Spencer Bogart told CNBC.

Source: Ricardo Esteves April 17. Newsbtc.com

IMF’s Lagarde Calls for Open-Minded, Even-Handed Cryptocurrency Policies

“Here, I want to examine the promise they offer. A judicious look at crypto-assets should lead us to neither crypto-condemnation nor crypto-euphoria,” said Lagarde.

Source: Gerelyn Terzo, April 17. Ccn.com

Analysis

BTC/USD

In the last 24 hours, Bitcoin’s price has been dropped by 70$, from around 8000$ to 7930$ where is now sitting. Looking at the daily chart, we can see that the price was pulled back to prior resistance which is now serving as support.

The current sentiment for this cryptocurrency is positive meaning 74% out of 181 mentions in total are positive.
Source: sentiment.io

Zooming into an hourly chart, we can see the interaction with the support line, from which the price bounced off.

 

Overall, hourly chart signals a sell.

Pivot points:

S3 4361.0
S2 5990.0
S1 6997.9
P 7619.0
R1 8626.9
R2 9248.0
R3 10877.0

 

ETH/USD

Ethereum’s price has been stagnating in the last 24 hours. The current price is where it was at the opening of the day around 509$.

 

Current market sentiment for Ethereum is positive, meaning out of 162 mentions in total 77% are positive.

Source: sentiment. Io

 

Zooming into the hourly chart we can see that there is low volatility, and the price hasn’t been changing much.

 

Overall, hourly chart signals a sell.

Pivot points:

S3 183.46
S2 327.57
S1 415.01
P 471.68
R1 559.12
R2 615.79
R3 759.90

 

XRP/USD

Ripple’s price also hasn’t changed much during the last day. The price only increased by 0.01$ making the price of Ripple stand at 0.665$.

 

The current market sentiment for Ripple is slightly positive, meaning 64.7% of 17 mentions in total are positive.
Source: sentiment.io

Zooming into an hourly chart, we can see the price movement is getting shorter and shorter, and that nothing has changed that much for this cryptocurrency.

 

Overall, hourly chart signals a buy.

Pivot points:

S3 0.13715

S2 0.37215
S1 0.50608
P 0.60715
R1 0.74108
R2 0.84215
R3 1.07715

 

Conclusion:

Cryptocurrency market is experiencing low volatility after the initial surge, which is a good thing. We can conclude that even though the short squeeze has pushed the price to go up on Bitcoin and in the overall market cap, new support is being found at 326B.