Cryptocurrency market recovery reveals key trading patterns

Andrew Munro 18 January 2018 NEWS

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As coin prices recover, many of the most popular cryptocurrencies are showing identical price movements down to the hour.

After around 48 hours in a pronounced downswing, during which the value of almost all top-market-cap coins tumbled, the cryptocurrency markets are recovering quickly. At the time of writing, 7 of the top 10 coins are showing positive change over the last 24 hours, according to CoinMarketCap, with only bitcoin, Ethereum and Bitcoin Cash being shy of recovery.

Of the top ten coins by market cap, Stellar Lumens, Ripple and IOTA are showing the strongest gains over the last 24 hours.

In the last approximately 36 hours:

  • Ripple (XRP) dropped to its lowest price in over a month, dipping from US$1.71 to US$0.90. It then recovered to US$1.40.
  • Bitcoin (BTC) dropped from about US$11,500 to a recent low of US$9,500, then rose back to its previous US$11,500 price 12 hours later.
  • Ethereum (ETH) dropped from around US$1,125 to a recent low of US$785, then climbed back over US$1,000 quickly.

Simultaneous movements

Over the last 36 hours, in the case of Ripple, Bitcoin and Ethereum and other coins, they all started their main drops at around the same time (15:00 to 16:00 UTC on 16 January), hit a distinct trough around 22:00 UTC on 16 January, and then hit a high recovery price almost exactly 24 hours later around 21:00 to 22:00 UTC on 17 January.

After this high recovery price, all coins are showing another downturn. That might be the result of people selling off their recent purchases to consolidate their gains for the day.

These down-to-the-hour movements are almost identical across other coins, including Litecoin, Cardano and Stellar Lumens. These market movements may reflect popular trading times in Western Europe and the USA.

The coins which didn't follow this pattern as clearly, such as NEO, Bitcoin Cash and NEM are well known for being popular in Asia, and the bulk of their traders might be running on a different clock.

If it can help you predict price movements down to the hour, it's potentially worth paying attention to these popular trading times and being aware of the countries your coins of choice are most popular in.


Disclaimer: This information should not be interpreted as an endorsement of cryptocurrency or any specific provider, service or offering. It is not a recommendation to trade. Cryptocurrencies are speculative, complex and involve significant risks – they are highly volatile and sensitive to secondary activity. Performance is unpredictable and past performance is no guarantee of future performance. Consider your own circumstances, and obtain your own advice, before relying on this information. You should also verify the nature of any product or service (including its legal status and relevant regulatory requirements) and consult the relevant Regulators' websites before making any decision. Finder, or the author, may have holdings in the cryptocurrencies discussed.

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