The cryptocurrency market is seeing the price action of major digital tokens trade in the red. But the real scenario in the cryptocurrency market is that of a short to medium-term consolidation as the market prepares for next leg of a major move. Ever since Bitcoin and Altcoins began declining post scaling new 2019 highs in recent past, all top 10 crypto coins have been locked in a wider price band. After overall market capitalization of the cryptocurrency fell back below $300 Billion USD, the $260 Billion USD acts as a strong hurdle as investor sentiment supports crypto market bulls fundamentally preventing further declines. But bulls lack the strength to make an upward breakout which has led to the current market scenario where top digital currencies are trading in zig-zag pattern trapped within familiar price levels.
Bitcoin: As of writing this article, BTCUSD pair is trading at 9754.50 down by 2.16% on the day. The overall market capitalization of Bitcoin is at US$174 Billion down by more than 10 Billion USD since this time on Monday. While the short term momentum seems dovish, the price still remains well above monthly lows hit last week near $9000 handle. This suggests that Bitcoin bulls lack the strength to make breakout rally but is strong enough to cap steep declines. Moving forward, regardless of decline Bitcoin will remain well inside familiar price level awaiting an opportunity to rebound back towards 10K mark. In the meanwhile, there is a strong support to downside near $9600 and $9050 handle respectively.
Ethereum: While Ethereum suffered declines similar to Bitcoin, its loss was comparatively limited. ETHUSD pair is trading at $208.18 down by 1.30% on the day. The market capitalization of Ethereum is currently at US$22 Billion down by just US$1 Billion which when compared with broad based investor sentiment suggests that ETH is relatively well shielded against influence of market bears. Similar to Bitcoin, Ethereum is also set to continue trading within familiar price levels. While the pair failed test resistance around $235 handle, it also remains well above support mentions mentioned in previous articles found at $205 and $190 handles respectively. Moving forward, as long as price action continues to remain locked within familiar price levels, resistance and support handles mentioned in previous articles are set to remain unchanged.
Ripple: While Ripple is trading in red, the price action is mostly flat with a slight bearish tone as visible from the fact that overall market capitalization of Ripple remains unchanged at US$13 Billion. While market capitalization remains relatively stable, the price of XRPUSD pair has declined below both support levels mentioned in Monday’s article. The pair is currently trading at 0.3081 handle well below psychological hurdle found at 0.31 handle and is consolidating its hold over recent declines slightly above intra-day lows but remains well within familiar price levels. The XRPUSD now stands to see a chance to re-test monthly lows at 0.2855 handle which will trigger a bullish rebound. However, strong support found near 0.3000 and 0.2900 handle suggest the pair could enter short term range bound momentum if it fails to breach the two above mentioned price levels.
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