Bitcoin and Altcoins Remain Vulnerable In Near Term
Bitcoin price is consolidating above USD 3,400, with a bearish technical structure. Ethereum and ripple recovered, but remain below key resistance levels. QNT, BAT and ICX rallied more than 10% today.
Yesterday, there was a sharp bearish turn in bitcoin below the USD 3,450 support. BTC/USD traded towards the USD 3,375 level and later recovered above USD 3,400. The price is currently (UTC 08:20 AM) consolidating and trading below important resistances at USD 3,450 and USD 3,480. Similarly, after a strong bearish wave, ethereum recovered above USD 104. However, ETH/USD is facing a lot of hurdles near the USD 107 - USD 108 resistance zone. Ripple price is also correcting higher, but it remains well below the crucial USD 0.300 resistance level.
Cryptocurrencies are on track to retest their fourth-quarter lows in a weak technical position, Fundstrat Global Advisors strategist Robert Sluymer said in a note Wednesday, Bloomberg reported. A proprietary gauge of market breadth in the space shows smaller coins are most at risk, he added. According to Sluymer, a break below USD 3,100 would imply a decline to USD 2,270, while a move above USD 4,200 is needed to signal Bitcoin is beginning to improve.
Total market capitalization
After a strong decline, bitcoin price recovered above USD 3,400 and started trading in a range. If BTC/USD breaks the USD 3,450 and USD 3,480 resistance levels, there could be a decent rebound in the near term. If not, the price remains in a downtrend and it may perhaps decline towards the USD 3,350 and USD 3,300 levels.
The price action indicates that the USD 3,400 support is acting as a solid barrier for sellers, but they need to overcome selling interest near USD 3,450 and USD 3,480.
Ethereum price recovered after trading towards the USD 101 support level. ETH/USD is currently up around 1.5%, but there are many resistances on the upside near the USD 107 and USD 108 levels.
A successful break above the USD 108 resistance could open the doors for a larger recovery towards the USD 115 level. On the downside, an initial support is at USD 104 and USD 102. The main supports are USD 101 and USD 100.
Bitcoin cash, eos and ripple price
Bitcoin cash price made another attempt to surpass the USD 120 resistance, but it failed. BCH/USD is currently up around 2% and it is trading near the USD 116 level. On the downside, supports are seen near USD 112 and USD 110.
EOS recovered recently, but it failed to hold gains near the USD 2.40 level. The price is currently trading near USD 2.35, with resistance on the upside near USD 2.40 and USD 2.42.
Ripple price recovered a few points, but it mostly remained in a bearish zone. XRP/USD is currently trading near USD 0.291, with many hurdles on the upside such as USD 0.294, USD 0.250, USD 0.280 and USD 0.300. On the downside, the main support is at USD 0.290, followed by USD 0.288.
Other altcoins market today
In the past couple of sessions, a few small cap altcoins traded higher nicely with gains more than 7%, including QNT, BAT, ICX, XEM, VERI, BSV, AOA, WAN and IOST. Out of these, QNT rallied close to 40% and BAT is up around 14%.
Overall, bitcoin price is consolidating losses above the USD 3,400 level. BTC/USD may correct higher, but it is likely to fail near the USD 3,450 or USD 3,480 resistance level. On the downside, a break below USD 3,400 and USD 3,375 could spark more downsides in BTC and altcoins in the coming sessions.