Bitcoin and Altcoins are Gaining Bullish Momentum
Bitcoin price started a major upside correction from the USD 6,430 low and moved above USD 7,000. Technical structure points a bullish formation from the recent lows in the cryptocurrency market. Many altcoins registered solid gains between 20-35%.
After a major decline, the cryptocurrency market started a decent recovery. All major digital currencies like bitcoin, ethereum, ripple, bitcoin cash, litecoin and Neo formed a bullish recovery pattern and started an upside correction. It seems like the market is currently under a recovery phase after hitting oversold conditions.
Bitcoin price formed a low near the USD 6,430 level before starting a recovery. It traded higher and broke a few important resistance levels such as USD 6,500 and USD 7,000. There was even an hourly close above the USD 7,000 level, opening the doors for more gains.
At the moment, BTC/USD is trading around 4.5% higher from the recent swing low of USD 6,873. On the upside, the next resistances are at USD 7,500 and USD 7,800.
On the flip side, if the price moves down from the current levels, the broken resistance at USD 7,000 could act as a support.
Ethereum is slowly grinding higher from the USD 355 low. ETH/USD is currently up 2.8% to USD 398. A break and close above the USD 400 level is required for more upsides in the near term.
If the pair fails to trade above USD 400, it may perhaps decline to retest the USD 375 and USD 360 support levels.
Bitcoin Cash and Ripple
Bitcoin cash is following Ethereum’s pattern and is slowly recovering. However, BCH/USD is finding it hard to break the USD 700 resistance. A successful close above USD 700 will most likely ignite a solid spike towards the next hurdles at USD 725 and USD 750.
Ripple is back above the USD 0.50 level, which is a positive sign. XRP/USD may consolidate for a few sessions before it makes an attempt to trade towards the USD 0.60 level.
Other Altcoins Market Today
Today, there were many altcoins in the green zone such as Steem, Storj, Verge, Power Ledger and Binance Coin. The market is showing many positive signals, but traders need to be careful since the current move could be a short-lived bounce/recovery.
Having said that, if bitcoin price settles above the USD 7,000, the overall cryptocurrency market could stage a larger upside correction.