According to Coingecko, the cryptocurrency market cooled down slightly today, with market capitalization down 1.14% to $2.76 trillion. This small correction follows a big move in the market over the past few days, as Bitcoin and Ethereum are facing resistance at key levels.
Bitcoin, the world's leading virtual currency, is about to break the $70,000 barrier. However, this level has proven to be a strong resistance level, and breakouts are often followed by corrections that impact the broader crypto market. Bitcoin fell 1.2% today, reaching a daily high of $71,754 before correcting to $69,793. Despite the recent decline, Bitcoin’s overall performance remains bullish as it continues to recover from the flash crash on BitMEX that saw its price plummet to $60,760.
Image: Tradingview
The current daily candlesticks suggest a possible correction, but the overall trend remains bullish.
This is a positive sign for Bitcoin as its price is trading above the 10 EMA, indicating that investors who bought in the past 10 days at current prices should be able to profit. According to data provided by IntoTheBlock, 97.7% of BTC addresses are in the money, and while some short-term traders may be looking to realize profits, long-term hodlers may still be forced to keep their tokens locked up and watch the market move. In terms of indicators, the recent market cooling has brought the market back into balance. The Relative Strength Index (RSI) is slightly bullish at 58, indicating a balanced market compared to the 72 points recorded on March 14, when Bitcoin was trading at a similar price. . This can allow for safer bullish bets with strategies that take market sentiment into account.
The average directional index (ADX) has fallen to 30 points, indicating that although the bullish mood remains, traders are becoming more cautious and the rally is not as extreme as before. If Bitcoin fails to gain momentum, the EMA10 near $67,800 will provide immediate support. However, if the bullish momentum continues, we can expect resistance between the psychological $70,000 zone and the all-time high of $73,794.
Ethereum, the second-largest cryptocurrency by market capitalization, is exhibiting similar behavior to Bitcoin.
The coin is currently trading at $6,543 and soared to $3,663 before correcting to today's low of $3,495. Overall, Ethereum has fallen by 1.35% in the past 24 hours. For the past three days, the coin has faced strong resistance at $3,660, indicating that the overall pattern is becoming more stable. This is bad for scalpers and day traders looking to open long positions.
Image: Tradingview
Ethereum remains bullish, but the difference between EMA10 and EMA55 is rapidly narrowing, which could indicate that the price correction is still ongoing. The RSI has fallen to 52, suggesting that the market is currently indecisive with neither the bulls nor the bears clearly in the lead.
ADX (measures trend strength) is 38. Combined with the squeeze momentum indicator, which estimates the stage of the market cycle in which an asset is traded, it shows that the bears have not yet conceded to a price rebound. It also indicates that traders may still be struggling to recover from the correction that began on March 12, when the price of Ethereum fell nearly 25% from $4,095 to $3,059.
Bitcoin and Ethereum are both facing resistance at key levels, but the overall trend remains bullish. However, traders looking to open long positions on short time frames should be careful, as the recent correction is strong enough to prevent the coin from continuing its path to the price discovery zone again. there is.
Edited by Stacey Elliott.
