Cryptocurrency market charges towards key resistance levels
After weeks of massive volatility and slump, the cryptocurrency market looks relatively calm with signs of a stabilising relief recovery in thin volume trading as bargain hunters and technical traders have been in play to provide a risk-off tone to reverse the tipping point.
As of press time, Bitcoin (BTC) is changing virtual hands at US $39,010, Ether (ETH) at US $2,830, ripple (XRP) at US $1.04, Binance Coin (BNB) US $421, cardano (ADA) at US $1.83, Dogecoin (DOGE) at US $0.32, ChainLink (Link) at US $32.10, UniSwap (UNI) at US $28.72, Polkadot (DOT) at US $27.80 and Stellar (XML) at US $0.42.
Bitcoin (BTC) has been consolidating above US $35,000 for a while and appears to be building momentum towards US $40,000, hungry for a fresh spark for a renewed upside push.
The current territory is the highest level since late May as similar surges previously were sold off sharply and eventually bulls lost the strength to push higher.
However, the US $40,000 mark is a major psychological resistance level with sellers lined up above to try to regain control over the market. Should Bitcoin reach and sustain this level, bulls may get even more encouraged.
On the flip side, there is strong support around US $36,000 and below US34,000 levels.
Technical situation on the second largest cryptocurrency looks better. The upward move on Ethereum appears without significant barriers all the way to the bottom of US $3,000.
Technical analysts seek patterns and signals in price charts which allow them to predict and interpret moves. Traders and automated trading systems also take prompts from technical signals.
At the same time, the current rebound still needs to find fundamental support and sustain to indicate a reversal of the overall downtrend prevailing over the past weeks.
Succeeding to hold constructively above the current levels could validate bullish potential and precipitate an impulsive surge to challenge the yearly highs.
At this point although most major coins are facing the resistance where sellers have lined up, slowing further ascent, positive traction is still possible if strong consolidation at the current levels persist, and if there is some good news to cheer bulls.