The cryptocurrency market is seeing major assets trade positive today following weekend’s rally which saw both Bitcoin and major legacy cryptocurrency pairs make yet another dead cat bounce. However, bulls are yet to give up on their attempt to make a positive breakout price action and the one major difference this time around is that Bitcoin bulls are also actively participating in the rally. As mentioned in one of my articles earlier this month, bulls in the crypto market continue to gain hold over new price levels on the upside following each dead cat bounce attempt.
Bulls Continue To Gain Ground After Weekend’s Dead Cat Bounce Attempt
While the consolidation above new highs is not readily visible in intra-day and daily charts owing to being trapped in a wider price band range, a comparison of daily and weekly charts should make clear the growing strength of bulls and stability which the bulls are gaining following each attempt to make a positive breakout. In the immediate future, crypto bulls are likely to find support for positive price action as investor sentiment seems to have improved on reports of major banks creating their own crypto coins supported by IBM & Stellar. Bitcoin bulls today managed to take the price back above $4000 handle and the BTCUSD pair has even managed to establish a relatively stable rally above $4000 market in the short term.
But that alone doesn’t confirm a positive price breakout as bulls could always lose strength and decline below the critical price level at $4000 handle similar to recent past. As of writing this article, BTCUSD pair is trading at $4021.7 up by 0.77% on the day, While ETHUSD pair is trading at $139.15 up by 0.45% on the day. Moving forward, the price of Bitcoin needs to stabilize above $4200 handle for a truly positive bullish breakout rally to be established. Similarly, when looking at Ethereum, the price is stable above short term hurdle found near $137/$138 handle but a breakout above $150 is required for bulls to gain a truly dominant hold over price action.
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This article was originally posted on FX Empire
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