Unusual Crypto Rally Increases Volatility
- Bitcoin price rallied towards the USD 7,000 resistance during a sharp decline in Tether.
- Tether dropped sharply and later recovered to USD 0.965.
- Many altcoins rallied between 6%-10% during the recent price spike.
Bitcoin price gained bullish momentum against the US Dollar and Tether (USDT) during the past few hours (UTC 08:20 AM). There was a sharp upward move in BTC/USDT above the USD 7,500 level due to a nasty slide in Tether below the USD 0.950 support. BTC/USD also gained traction and surged above the USD 6,500 and USD 6,700 resistance levels. However, buyers failed to hold gains and bitcoin price reversed most of its gains. BTC/USD is back to USD 6,600 and it is currently trading with a positive bias. Similarly, ethereum, bitcoin cash and ripple rallied recently before trimming most of their gains. Overall, the recent price spike ignited a lot of volatility in the crypto market, which could help bitcoin buyers in the short term.
Total market capitalization
After testing the USD 6,200 support, bitcoin price started an upward move. BTC/USD broke the USD 6,350 and USD 6,400 resistance levels to climb sharply higher. It even spiked above the USD 6,850 resistance, but sellers quickly reversed the bias.
The price declined sharply and traded below the USD 6,700 level. It is currently trading near the USD 6,600 mark, with an immediate support near the USD 6,500 level. The most important support on the downside awaits at USD 6,400. On the upside, the price needs to regain the USD 6,700 level to climb back towards USD 6,800.
Ethereum price broke the USD 200 resistance zone to enter a positive area. ETH/USD climbed above the USD 205 and USD 215 resistance levels.
The price also traded above the USD 220 level, but later it declined below USD 215. It is currently up 5% to USD 211, with an immediate support at USD 210. On the upside, buyers need to settle the price above the USD 225 resistance for further gains.
Bitcoin cash and ripple price
Bitcoin cash price rallied above the USD 450 and 475 resistance levels during the recent upward move. BCH/USD tested the USD 490-500 resistance zone, which prevented further upsides. The price is currently down to USD 462 and it may well continue to trade lower towards the USD 450 support.
Ripple price surged above the USD 0.450 resistance and even spiked above the USD 0.465 level. Later, XRP/USD reversed gains and it is currently trading near the USD 0.445 level. It seems like a proper close above the USD 0.450 level is needed for a larger upward move.
Other altcoins market today
Many altcoins gained traction and moved up between 7%-20%, including komodo, DROP, holo, bytecoin, BTG, DGD, MOAC and NPXS.
Overall, the recent upward move in bitcoin price seems like a false spike, but as long as BTC/USD is holding the USD 6,400 support, it could climb higher once again. Similarly, if ETH/USD stays above the USD 210 level, the pair may possibly retest the USD 225 resistance.