Cryptocurrency market is seeing consolidative and corrective price action among Bitcoin and other major legacy cryptocurrencies. Following the weekend’s attempt at breaching critical resistance price level which ended as a dead cat bounce event, bulls made another attempt at bullish breakout and managed to gain significant ground on the upside. Crypto market is currently on the path for slow and steady upside price action despite a clear lack of fundamental support in the form of any event or high impact headlines. Meanwhile, bears continue to grow strong from various headlines which have so far failed to have any visible impact on the price action of major cryptos.
Today, 8 of the top 10 cryptocurrencies in terms of market volume are seeing corrective price action but all pairs have retained hold over a significant part of the gains from upward price action earlier this week. Bitcoin, the progenitor of cryptocurrencies is holding steady well above $4000 price handle and as of writing this article, the BTCUSD pair is trading at $4022.40 up by 0.07% on the day. Meanwhile, in spot market ETHUSD pair is trading at $138.71 down by 0.40% on the day but well above the major support level of $135 handle. This price action suggests that bulls are strong in the current market and have greater sway over price momentum despite fundamentally strong bulls waging war for control of the momentum.
Moving forward, Bitcoin needs to stabilize its hold over $4000 handle before starting on its next leg of upside price move to breach resistance at $4200 which will open up gates for sharp bullish recovery towards $6000 handle. However, bulls need to gain a strong grip over current price levels in immediate and near future trading sessions before aiming for a further upside move. Similarly, Ethereum needs to gain stability above $135 handle in immediate future and breach $140 handle before aiming for critical resistance at $150 handle. Given the lack of fundamental strength for bulls, the above-mentioned task is a hard uphill climb for crypto bulls. The bulls are likely to retain momentum as long as major crypto coins gain stability and continue to climb or trade flat in immediate and near future while a fall below critical price level is likely to give bears control over price action resulting is high losses even if the decline is only to a limited extent similar to recent past.
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This article was originally posted on FX Empire
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