Bitcoin and Ethereum Trading Near Make-or-Break Levels
- Bitcoin price recovered around 4% after testing a crucial support area near USD 6,000 - USD 6,100.
- A close below USD 6,000 and USD 5,600 could trigger a breakdown in BTC/USD.
- Ethereum price is also holding an important support around USD 350.
Bitcoin found support near the USD 6,000 - USD 6,100 area and later it recovered above USD 6,400. BTC/USD gained around 4% and moved above the USD 6,500 resistance, but it failed to hold gains. Similarly, there was a tiny correction in Ethereum from the USD 350 support. Still, ETH/USD seems to be struggling to surpass the USD 365 - USD 370 zone.
Going forward, it seems like bitcoin price is trading near significant support levels. According to Jeff deGraaf, the head of technical research at Renaissance Macro Research, a break through the key year-to-date support level (USD 5,600- USD 6,000) could be “game over” for bitcoin. Similarly, Rob Sluymer of Fundstrat Global Advisors believes that the crypto technical backdrop continues to deteriorate and a break below USD 5,300 could trigger a move towards USD 3,520, which is a key level.
Therefore, BTC/USD is currently (UTC 08:30 AM) trading near make-or-break levels. Should buyers fail to keep the price above USD 6,000 and USD 5,600, there may possibly be a technical breakdown. On the other hand, if bitcoin price continues to hold USD 6,000, it could bounce back towards the USD 7,000 and USD 7,500 levels.
In the short term, bitcoin price is facing a major hurdle near the USD 6,600 level. It failed recently to surpass the stated level and is currently trading near the USD 6,400 support.
The next support on the downside is at USD 6,250, followed by the all-important USD 6,000 - USD 6,100. On the upside, resistances are USD 6,500, USD 6,600 and USD 6,800.
Ethereum price managed to stay above the USD 350 support, but it is struggling to rebound. ETH/USD is facing a lot of hurdles near the USD 365 and USD 370 levels.
On the downside, a break below the USD 350 support could trigger heavy losses in ethereum and the price could may even trade towards the USD 300 level.
Bitcoin cash and ripple
Bitcoin cash price attempted a recovery above the USD 600 level. However, BCH/USD failed to surpass the USD 620 - USD 630 resistance zone. It seems like the price is likely to decline back towards the USD 580 and USD 560 support levels.
Ripple price recovered towards the previous support at USD 0.35, which acted as a resistance and prevented gains. It is currently down 1.2% to USD 0.335 and it remains at a risk of more declines.
Other Altcoins Market Today
A few altcoins gained today, including chainlink, dentacoin, stellar, BIX, NXT, komodo and dogecoin. On the other hand vechain, AE and bytecoin posted declines between 4-6%.
Overall, traders must keep a close eye on the USD 6,000 and USD 5,600 support levels in BTC/USD. A break below these could trigger sharp losses in bitcoin in the coming days.