Why It Matters: Cryptocurrencies traded in the red as risk assets lost momentum on Tuesday, when the S&P 500 and Nasdaq fell 2% and 3%, respectively. At press time stock futures traded flat.
“Bitcoin remains anchored at around the $20,000 level and won’t break out until Wall Street is confident a broader slowdown is not happening,” said Edward Moya, a senior market analyst at OANDA.
Cryptocurrency trader Michaël van de Poppe said on a technical level altcoins such as Ethereum are showing more strength than Bitcoin. Pointing to the BTC/ETH chart, the analyst said ETH had a “solid bounce” from heavy support zone after a downwards movement.
Van de Poppe said Ethereum is “currently fighting resistance around 0.06 BTC … If it breaks it, then I’m looking at 0.065 BTC.”
Even so, positive commentary about the second-largest coin by market cap is “very scarce” these days, according to Santiment. The market intelligence platform tweeted that the ETH ratio of positive versus negative comments hasn’t been this low since May 2018.