The cryptocurrency market is currently back trading in positive territory following yesterday’s sharp upside move. However, given the fact that there is a lack of fresh fund flow into the cryptocurrency market and even the ongoing rally is just a result of existing players returning to make the most from the current scenario major cryptos are trapped near previous resistance price levels. While analysts and traders may predict that there is more upside in store for Bitcoin and other major legacy crypto coins in near future and may point to various technical scenarios to justify the claim, from a fundamentalist perspective, current market lacks the trigger and strength required to make a breakout and establish a stable rally above critical resistance price levels.
Price Consolidates But Bears Likely To Eat Away Recent Gains Unless Bulls Breach Critical Price Levels
Both Bitcoin and Ethereum are currently trading in familiar price levels i.e., $3800 handle & $130 handle respectively. For a clear positive price rally to be established moving forward, Bitcoin needs to breach $3800-$3950 price range limitations, while Ethereum needs to breach $140 handle for bulls to really dominate price action. In the current trading scenario, volatility remains high so there is some level of hope for continued upside price action in near future, but as price action indicated today, bulls currently lack the strength to even breach the upper end of price range limitations which is currently acting as a great hindrance for further gains. But the scenario can also be viewed as crypto market seeing strong fundamental support building up in the background to establish a bottom before bulls really build on further solid upside move.
As of writing this article, Bitcoin and Ethereum are trading at $3861.3 and $137.78 up by 0.050% & 2.41% respectively. In immediate and near future, Bitcoin needs to move above $3900 handle for recovery rally to really shine while continued price action below said handle in near future will result in investors beginning to slowly erode away at profits resulting in slow decline of rally given the fact that compared to other legacy crypto coins the profit margin is relatively low in Bitcoin. Meanwhile, Ethereum needs a clear break above $140 for solid gains while a decline below $135 handle will likely lead to sharp drop towards $105-$110 price range given the fact that $135 mark is owing to significant supply found in this level when compared to other support price levels.
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This article was originally posted on FX Empire
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