Crypto is again mirroring gains in stock markets today, with Wall Street’s sharp surge after opening higher likely to give Bitcoin a further boost. Last Friday, the crypto market saw a significant drop that correlated with US indices.
Bitcoin and Ethereum, the major players in the crypto market, are up 2% in the past 24 hours. The combined capitalization of both cryptos hit nearly $1.2 trillion today, with the total crypto market cap standing at $1.9 trillion.
Related Reading | Ethereum is trading below $3k support, why has ETH been falling since November?
Crypto markets are enjoying a broad recovery as stocks continue their uptrend. The BTC/USD pair is trading above $40,000, while ETH/USD has gained ground near the $3,000 resistance level. Both coins are gaining amid this positive trend for all assets.
The S&P 500, Dow Jones Industrial Average and Nasdaq Composite are all up today. The S&P 500 is up 2.3%, the Dow Jones Industrial Average is up 1.7% and the Nasdaq Composite is up 2.8%. This came as Asian and European stocks had good days ahead of the US Federal Reserve’s 0.5% rate hike.
Bitcoin and Ethereum still look bullish
Bitcoin price is holding well above $38,000 but it is close to touching another key supply wall at $40,000. However, this could mean that the bulls still have some strength and could push higher soon.
After testing $39,926, Bitcoin is currently trading in red below $39,000 | Source: Tradingview.com BTC/USD chart
According to altcoin Sherpa, a crypto trader and analyst, “the market structure looks bullish.” He further added;
As long as these lows are sustained and we still see higher lows, I think the bullish market structure is still intact. Still thinking 55,000+ in the coming weeks.
Commenting on Ethereum’s prediction, altcoin Sherpa said:
Unlike $BTC, ETH is still well above its recent lows and still has a bullish market structure (BTC does too, but it’s closer). Would love to see a higher low for #Ethereum. I think it’s still BTC delivered, as always – if BTC tanks, so will ETH.
Related Reading | TA: Key bitcoin indicators are pointing to a strengthening of the case for a decent hike
“Bitcoin could go higher,” said Rekt Capital, one of the top crypto analysts. The Analyst called;
A bullish divergence is playing out on the 4-hour chart. The key resistance in the very short term will be this red area [above $40,300]. A conversion to support like the previous yellow circle would be a bullish sign of trend continuation.
Bitcoin has been below its 100-day moving average for a few weeks. The price was supported by $37,000 and the falling trend line. This has reduced bearish momentum. The $37,000 mark has become a key support for Bitcoin. If it falls below that, the price could drop to $30,000.
Featured image from Pixabay and chart from Tradingview.com
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