Cryptocurrencies on Friday have slumped down on the trading chart as per coinmarketcap.com. The largest crypto exchange, Bitcoin recorded a slump by 2.8 per cent at 0808 hours IST.
The previous week saw a surge in price of Bitcoin to $50,000. Meanwhile in April, 2021 this exchange topped the charts as it hit an all time high of $65,000. However, Bitcoin recorded a sharp decline from $65,000 to $28,800 in the month of June.
It was due to the massive sell of the assets in June-July triggered by China who imposed ban on financial companies, payment companies that provided services related to digital assets or cryptocurrencies.
Sidharth Menon CEO of WazirX said “Bitcoin has broken out of the rectangle pattern after 12 weeks of consolidation. It now trades around the 1st level support on the trendline. Day close below the trendline($46,640) may put sell pressure on Bitcoin and it may test the 2nd level support around $41,000-$42,000. Corporates like Microstrategy still find Bitcoin attractive at this level, they bought around $177 million worth of Bitcoin at $45,294 per coin.Key Levels for Bitcoin -Resistance – $53,000, Support – $41,000.”
Meanwhile Ether, the other crypto giant was trading at or below $3,124 or down by 2.84 percent. For Ether the market cap stood at $366.28.72 billion.
Zebpay trade desk confirmed that Ethereum was facing a stiff resistance at $3,335 which is hard to beat. It said, “Ether made a ‘Double Bottom pattern or a ‘W’ pattern at $1,721.
It completed the pattern at $2,400 giving a breakout above the neckline with good volumes and the asset witnessed a sharp rally surging almost by 96.8% making the high of $3,380. Post this move, the asset has faced stiff resistance around the $3,400 mark and the prices are consolidating and trading in a broad range from $3,350 to $2,975. Breakouts on either side will further decide the trend for the asset. Ether resistance 1: $3,400, resistance 2: $3,800, support 1 $2,950, support 2 $2,650.”
Meanwhile, Cardano occupied the third place as it traded at $2.59.