Dec. 25 Mars Market Recap: BTC Finally Fell below the 5-day MA; ETH Saw a Strong Upward Momentum; TRX, BCH, BSV Have Dropped for Several Days Straight with Shrinking Volume

Dec. 25 Mars Market Recap: BTC Finally Fell below the 5-day MA; ETH Saw a Strong Upward Momentum; TRX, BCH, BSV Have Dropped for Several Days Straight with Shrinking Volume

Dec 25th 2018| Investment By:Mars Finance
The shrinking volume indicated the weakness of the short side, but a sharp drop below $4,000 was still a bit sudden.

Topic in Discussion

After oscillating around $4,000 for several days, BTC, which saw a continuous decline in volume, finally failed to hold up and quickly fell below the support of the 5-day MA and stopped falling above the 30-day MA of $3,800. In yesterday morning, in the process BTC sharply pulling up to above $4,300, the volume of BTC rose weaker than before, and the subsequent volatility was increasingly exhausted. As a result, the strong resistance of $4,300 finally proved very strong. 

Currently the support above $3,800 remains weak. We can see from 4-hour chart that the volume of BTC continued to shrink, and the situation may be worse in the after-market. Though there is a 30-day MA in this position, the trend can not only be judged by index in the bear market. There was demand for a rebound after a sharp fall yesterday and today, so the safer bet now is to move below $4,000. If the price can stabilize again, the after-market will be optimistic.

Among other mainstream currencies, ETH was in a strong position on the whole, but it still decreased with BTC; EOS falls weakly; TRX, BCH and BSV have dropped for several days straight with shrinking volume.

Market Overview

As of 6pm on December 25, according to CoinMarketCap data, the total market value of digital money market is $129.9 billion, $15.91 billion less than the total market value of yesterday, down 10.91% month-on-month; Total market turnover was $23.2 billion, down $1.38 billion from yesterday and up 5.61% month-on-month. 

Today, the major stablecoins change as follows, USDT current price is $1.02, down 0.34%; The other four stablecoins TUSD and USDC increased slightly, PAX and GUSD decreased slightly. Currently, only USDT and TUSD remain at the current price of $1.02. USDC, PAX, GUSD current price $1.01. The sharp decline in the digital currency market has led to a sharp decrease in the demand for crypto market entrance, and the demand for stablecoin over the counter has dropped, but the demand on the floor is still strong.

 

Mars Finance monitored 7 of the top 100 digital currencies by market value, and 37 of them rose within the range of 5%. The 100 digital currencies fell an average of 10.21%. Endor Protocol grew 10.04%, followed by Populous's 4.80%. Wanchain was the worst performer, down 16.91%, followed by Bytom, down 16.51%.

 

Market Forecast

BTC

BTC was out of steam after a long-time volatility at $4,000. The shrinking volume indicated the weakness of the short side, but a sharp drop below $4,000 was still a bit sudden. The BTC will consolidate above the 30-day MA around $3,800 in the near term. 4-hour MACD index diverged and BTC may continue to dip as a result of an extreme shrinkage in volume in the after-market.

The main net inflows is 620 million yuan over 24 hours, the retail net outflow is 765 million yuan, which showed a strong short side dominated market.

 

BCH

BCH has sharply reduced its volume since 22nd, fluctuated and declined on 23rd, and fell sharply from yesterday's record high. The recent weakness was highly related to ETH's strength. In investors' minds, the optimistic trend of BTC and ETH weights much heavier than the volatility of BCH and BSV. However, the current price of BCH is still relatively low, and the demand for short-term upward rebound is still large, but the space for downward decline is not much, thus it may continue to rise after oscillation.

The main net outflow is 814,300 yuan over 24 hours, the retail net outflow is 32,186,100 yuan, which showed a relatively strong short dominated market.

 

ETH

The recent rebound momentum was strong, but ETH still fell with the market. The recent rally to a high of $163 also indicated the long side of ETH was strong. It remains supported by a 5-day MA at around $125 in the short term although it moves with BTC.

The main net outflow is 33,751,500 yuan over 24 hours, the retail net outflow is 762 million yuan, which showed a strong short side dominated market.

 

Industry Overview

As of 6pm, no sector out of 27 blockchain industry sectors of 5 classifications went up, according to TokenInsight. Among them, "anchors and reserves" sector saw the best performance with an average decrease of 0.71%, followed by "financial applications" sector with an average decrease of 7.16%. The "energy and mining applications" sector saw the worst average decrease of 17.79%, followed by the "other applications" sector with an average decrease of 15.03%.