Crypto Markets See Red As Traders Take Profits

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Cryptocurrency markets are on the decline.

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Digital currencies are mostly in the red today, with many losses registering in recent times as traders take profits.

As of this writing, bitcoin, ether, XRP, litecoin, dogecoin, stellar, and bitcoin cash have all lost value in the past 24 hours, according to figures from CoinDesk.

Some digital currencies, including bitcoin and the Cardanos ADA token, were in the green, additional data from CoinDesk reveals.

[Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]

In explaining these recent price movements, several analysts indicated that traders were selling their cryptocurrency for a profit.

I agree that some traders take profit, said digital currency investor Marius Rupsys.

We had a very big drop (long liquidations forced to $ 29,000), which was followed by a short squeeze, which helped fuel a substantial increase in prices, he noted.

Nick Mancini, research analyst at crypto sentiment analysis platform Trade The Chain, also weighed in on the situation, highlighting the convincing gains recorded so far this year.

After such a steep rise in prices, many traders and holders tend to take profits to protect their bottom line, he said.

Priced at $ 44,000, over 82% of Bitcoin wallet addresses are in the money. When we see the number of silver portfolios above 80%, you usually see investors start to take profits, Mancini pointed out.

Gary Pike, sales and trade manager at the B2C2 crypto services company, offered a similar perspective to the aforementioned market experts, but he also provided technical analysis.

In my opinion, this pullback is purely technical and profit-taking, he said.

Just last month, bitcoin was trading below $ 30,000, so expect some pullback after double-peaking at $ 48,000 as the rally had grown tired, Pike said.

Other analysts have also referred to technical analysis, pointing out that in the future bitcoin will likely encounter resistance near $ 50,000.

Raghu Yarlagadda, co-founder and CEO of digital currency trading platform FalconX, spoke about it, saying that:

BTC has a large $ 50,000 resistance band that will require significant buying volume / pressure to break through.

Disclosure: I own bitcoin, bitcoin cash, litecoin, ether, and EOS.

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