08.04.202116:12 Forex Analysis & Reviews: Local correction or protracted recession: traders lost more than a billion amid fall in BTC, XRP, and ETH quotes

The last few days have been favorable for the growth of cryptocurrencies, however, on April 8, quotes of major assets went down. Over the past day, the digital coin market has risen in price by 0.2%, which indicates the beginning of a downward movement of crypto asset indicators. At the same time, the news background remains positive, which at this stage does not prevent cryptocurrencies from falling below psychological levels.

Over the past day, bitcoin indicators increased by only 0.6%, but on the night of March 8, the asset's quotes fell sharply by 3%, which provoked significant losses among traders. Long positions of the BTC/USD pair with a total volume of $613 million were liquidated on cryptocurrency exchanges around the world. The closing of margin positions happened when bitcoin reached $55,500, but as of 12:00 UTC, the asset rose to $56,300. Bitcoin's daily trading volume also continues to decline, reaching $54.5 billion.

Exchange Rates 08.04.2021 analysis

It is already becoming obvious that the main cryptocurrency cannot overcome the $60,000 mark for more than a week, and this may indicate a decrease in the upward momentum. Based on the charts, the market provides the asset with serious support just at the level of $50,000-$55,000. Soon, bitcoin will not be able to overcome the $60,000 mark, since the process of price consolidation is taking place at this stage. In this regard, the asset quotes are under pressure in the region of $57,000-$60,000, which does not allow it to overcome the difficult milestone. In turn, this was the beginning of a local correction, which will allow the crypto asset to continue to grow in the future.

More than $310 million was lost by crypto exchange users due to the forced closure of positions in the XRP/USD pair. The Ripple token fell from $1.01 to $0.900, which triggered the forced closure of long positions. However, as of 12:00 UTC on April 8, the asset resumed its growth and rose in price by 7.4%. At the same time, cryptocurrency quotes cannot gain a foothold above $0.940. Also, a sharp drop in daily trading volumes, which amount to $12.9 billion, testifies to a possible rollback of positions.

Exchange Rates 08.04.2021 analysis

Ether indicators significantly sagged, which provoked losses of crypto-exchange users by $283 million. After another record, the quotes of the ETH/USD pair fell to $1,900. However, ether is starting to gain momentum and has risen in price by 2.2% over the past day, despite the sagging trading volume over the same 24 hours. As of 12:00 UTC, Ethereum's indicators again crossed the $2,000 milestone, which indicates a high level of asset support at this milestone. Unlike Bitcoin and XRP, the main altcoin can swing for a new historical leap, because the cryptocurrency has already reached the $2,014 mark.

Exchange Rates 08.04.2021 analysis

The three main active assets in the digital coin market brought total losses to crypto-exchange traders amounting to more than $1 billion. Despite this, the majority of cryptocurrencies are demonstrating the dynamics for the next growth. This is also evidenced by the news background, which continues to be saturated with positive. The head of Goldman Sachs said that the cryptocurrency market will soon face an evolution associated with the expansion of the powers of banks when working with assets. In addition, there are numerous news that various cryptocurrencies are starting to accept taxes as payment, as announced in the Swiss canton. A real estate agency in California has also decided to accept payment in bitcoins.

Despite the local correction provoked by the sharp rise in XRP, the indicators of the main altcoins will continue to grow. With the main cryptocurrency, the situation is more complicated, because if the market does not show consolidation and high support at the level of $55,000-$60,000, then the asset may start a downward trend or sideways movement. And this indicates a possible drop in quotes to $40,000-$45,000.

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.

Artem Petrenko,
Analytical expert
InstaForex Group © 2007-2021
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