- The Turkish central bank bans the use of cryptocurrencies to make payments.
- Bitcoin retreats to affirm support at $60,000 as risks for another leg down deepen.
- Ethereum depends on the support at $2,300 to secure the uptrend back to $2,500.
- Ripple is forced to play defense as selling pressure increases following rejection from $1.9.
The cryptocurrency market is flipping bearish and fast during the European session on Friday. Major crypto assets such as Bitcoin, Ethereum and Ripple appear to be leading the correction. The Coinbase stock listing on Nasdaq positive impact seems to have been squashed by the intensifying selling pressure.
Dogecoin rallied by 120%, hitting a new all-time high at $0.3. The meme coin extensively broke out after Elon Musk's tweet regarding a "Doge" barking at the moon. Currently, Dogecoin dodders at $0.27
Meanwhile, the Turkish government has imposed banned cryptocurrencies for payments. According to the country's central bank, "crypto assets entail significant risks to the relevant parties." The regulator said that volatility could hurt the parties' market values. Besides, cryptocurrencies can be used in "illegal actions due to their anonymous structures."
Bitcoin Loses More Ground, Risks Sliding Under $60,000
Bitcoin has been defying gravity to hold support above $62,000 since the price was rejected from highs close to $65,000. The flagship cryptocurrency has rallied extensively since the beginning of the year. The frequent retreats do not seem to bother investors anymore as many of them speculate liftoff above $70,000 in due time.
Bitcoin trades at $60,500 after testing support at $60,000, while bulls work hard to hold the 50 Simple Moving Average Support. However, if the bearish leg stretches, the 100 SMA, slightly under $60,000, will come to their rescue.
It is essential to realize that short-term technical indicators such as the Relative Strength Index (RSI) on the four-hour chart reinforce the bearish outlook. Therefore, closing the day under $60,000 may add credence to the narrative.
BTC/USD Four-Hour Chart
Stability will return to the market if support at $60,000 holds, allowing more buyers to enter the market. An increased buying pressure would trigger the resumption of the uptrend.
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Ethereum Uptrend Jeopardized Amid Heightened Selling Pressure
Ethereum rose to a new record high at $2,550 as bulls achieved another milestone. The price action immediately shifted the bulls' focus and scope to $3,000. However, the bearish wave in the market curtailed the celebrations, leading to a correction toward $2,300.
Ether trades at $2,368 amid the rising overhead pressure. The Moving Average Convergence Divergence (MACD) hints at the downtrend gaining traction in the near term. As the MACD line (blue) crosses under the signal line, sellers are encouraged to stream into the market.
Closing the day under $2,300 could validate the downtrend. Ethereum's down leg would stretch to the next anchor at $2,200, as highlighted by the 50 SMA.
ETH/USD Four-Hour Chart
On the other hand, the SuperTrend indicator has a bullish impulse regardless of the retreat. This shows that bulls still have the upper hand and the uptrend can resume.
Ripple Tests Critical Support as Declines Linger
Following a two-week winning streak, Ripple has incurred significant losses from the recent weekly high of $1.9. As discussed earlier, breaking below the ascending parallel channel would lead to another leg down.
At the time of writing, Ripple teeters at $1.56 while bulls test the robustness of the support provided by the 50 SMA on the four-hour chart. The RSI reinforced the downtrend, crossing under the midline. If the RSI stretches to the oversold area, massive losses will come into play as Ripple spirals nearer to $1.
XRP/USD Four-Hour Chart
Ripple will resume the uptrend if the 50 SMA support holds. Moreover, pushing above $1.6 could trigger more sell orders as speculation returns for gains beyond $2. For now, it is vital to secure market stability by clinging to the 50 SMA support.
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