CryptoWatch: Bitcoin looks ‘very sick’ and the pain is not over, says analyst

CryptoWatch: Bitcoin looks ‘very sick’ and the pain is not over, says analyst

After a brief reprieve on Thursday, when most digital currencies finish in the green, all major coins showing losses in early New York trading on Friday.

Bitcoin BTCUSD, -0.39% the world’s largest digital currency was last changing hands at $6,308.79, down 3.1% since Thursday at 5 p.m. on the Kraken cryptocurrency exchange, after reaching an overnight high of $6,621.71.

With just two winning sessions since July 29, the outlook for bitcoin is anything buy rosy. “Long gone are the hopes of retaking $8k and now only a few hundred dollars separates us from another lower-low. This chart is very sick and we still have a way to go before this over,” wrote Jani Ziedins of CrackedMarket Friday morning.

During this 13-day stretch, the total market cap for all cryptocurrencies has fallen $70 billion, while bitcoin’s dominance has increased, reaching a 2018 high of 49.1% of all cryptocurrencies. “Basically, we see a few factors that are incrementally favorable for BTC and only 1 factor that supports altcoins,” wrote Tom Lee, managing partner at Fundstrat Global Advisors. That lone positive, he said, is “the incremental capital allocation to ICOs.”

Altcoins continue to lose ground

The underperformance in altcoins continued on Friday. Ether ETHUSD, -0.12% is down 2% to $355.80, Bitcoin Cash BCHUSD, -0.74% is trading lower by 3% at $588.80, Litecoin LTCUSD, -2.19% has lost 4.1% to $60.92 and Ripple’s XRP XRPUSD, -2.47% is the worst performing altcoin, down 4.3% to 33 cents.

After getting back on track Thursday, bitcoin futures are lower Friday. The Cboe Global Markets Inc.’s August contract XBTQ8, +0.12% is down up 2.2% to $6,335 and the CME Group Inc.’s August contract BTCQ8, +0.31% is down 2.1% to $6,330.

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