Cryptocurrency Prices have been a rollercoaster ride for the past few weeks, providing a lot of opportunities for investors and traders. To a beginner trader or a total newby, the falling charts can only mean that they are losing money. But to an advanced trader, even small price movements can mean a percent profit for him. In this Price Analysis, we are going to take a look at the Price Charts for Ethereum, Bitcoin and Ripple and what clues can we take away. For the most accurate data, I took the charts from Coinmarketcap, because I trust them as the best website for Cryptocurrency Prices, Statistical and Technical data.
Learning to read charts is the most useful skill in trading and without it you can’t trade, you can only gamble. In the Crypto world, Cryptocurrency Prices move much faster than the stock market, so you need to pay attention to the charts in real time, so that you can act immediately to sudden changes. Overall, the whole market was a rollercoaster for the last month with ups and downs. There were clear winners like Stellar and Bitcoin who outperformed the rest of the Cryptocurrency prices and others struggled to stay at above their bottom support levels. In this article we will only focus on the three leaders: Bicoin, Ethereum and Ripple. Also, i’ve put numbers on graphs and will talk about every event separately.
Cryptocurrency Prices: Bitcoin (BTC)
Bitcoin has been one of the best performing Cryptocurrencies and beat most other Cryptocurrency Prices. Since June 16th, Bitcoin has risen from 6400$ to 8200$, reaching an important support level. Currently, BTC is trading for 7600$, because of the recent downtrend, but it was trading for 8450 a week before. Still, Bitcoin is dominating the market with 47.8% dominance index, reaching 48.21% just few hours before.
- July 16th, Bitcoin was trading for 6400$. Since then, Bitcoin experienced a great upward movement, staying stable at the crucial support levels. Every price increase is excess buying and every price drop is excess selling, so you can see at which moments there were bull runs and big selling. Big selloffs can be panic selling, a whale that wants to sell or both.
- On 25th July, you can see a huge spike in trading volume. It was an hour window in which Bitcoin’s volume more than doubled. It jumped from below 7$ billion to 15$ billion and back to 7$ billion after. I guess whales tried to pump up Bitcoin’s price, but met a stronger opposition to their venture. One thing is for sure, a lot of Bitcoins changed ownership in that hour period.
- This Price movement shows Bitcoin’s strength. The price started to fall from 8120$ and it went down to 7920$, but 2 hours later it was back to its previous support level. This is a great signal for Bitcoin’s strength and the power of the free market.
- This is the recent downtrend. Bitcoin again started to fall from 8130$, but this time it reached 7520$. Currently, Bitcoin is starting to recover, jumping quickly to 7660$ and this will be a test for Bitcoin’s strength. Either Bitcoin’s price will bounce back to the 8200$ support level or it will consolidate in a channel for a period of time.
- Like with the previous examples, this price movement shows Bitcoin falling from 8280 to 7900. It consolidated volatilely in a channel and bounced back to 8200$ support level.
Cryptocurrency Prices: Ethereum (ETH)
- Ethereum’s Price was consolidating at the 450$ mark, when a beutiful bull run raised Ethereum’s price to 475$ and then to 482$.
- More interesting is the orange line – Ethereum’s price in Bitcoin. You can see that the orange line fluctuated volatilely up and down. Ethereum’s Bitcoin price fell from 0.0586 to 0.0569 in hours, bringing great opportunities for the Bitcoin/Ethereum trading pair. This was short lived though, as Ethereum’s Bitcoin price jumped even higher than it fell from. From 0.0569, the price jumped to 0.0587 and subsequently to 0.0590. Many investors took the opportunity to make great percentages off that.
- This fall in price account for the same fall with Bitcoin. But unlike Bitcoin, Ethereum did not recover to the previous support level. Excess selling can be felt, as fear, doubt and uncertainty have plagued Ethereum.
- Ethereum spiked in volume throughout 28th July. Ethereum’s volume was 1.7$ billion and jumped gradually to almost 12$ billion, before winding down to 1.7$ billion again. I guess it was a good try to pump, but…
- But throughout the whole volume increase, Ethereum’s price dropped so it wasn’t a pump afterall. It looks more like an enormous selling volume. Ether way, a lot of Ethereum changed ownership that day.
- This price fall was the same as Bitcoin’s number 3. Like Bitcoin, Ethereum was quick to recover too, but has fallen victim to the recent downtrend.
Cryptocurrency Prices: Ripple (XRP)
Ripple wasn’t performing well recently. But today, Ripple experienced a bull run, that revived the XRP token and its volume.
- When Ethereum and Bitcoin fall, the almost always follows. This is the same situation as with Bitcoin and Ethereum. Ripple wasn’t that good to recover after that, entering a downtrend that ended today. You can see with the orange line that Ripple’s Bitcoin price increased during the dip, therefor Ripple outperformed Bitcoin during the dip.
- Ripple’s volume has been declining, but todays bull run increased it by 30%.
- This dip was the same as with Ethereum and Bitcoin. Im showcasing this to emphasize to newer traders the correlation between Ethereum and Bitcoin prices towards the rest of the Cryptocurrencies. They mostly follow the two leaders.
- This dip can be seen with Ethereum too and Ripple recovered quickly from the enormous selling.
- This is today’s bull run. Ripple’s volume has been revived in most exchanges. Traders could profit from all of Ripple’s trading pairs: in fiat, Bitcoin and Ethereum. All were in favor of Ripple so some people made profits off that. This doesn’t mean that Ripple exploded, rather it recorded some gains.