Bitcoin and Ethereum Remain Stable as Cryptocurrency Market Cools Off

Ethereum and bitcoins

Today, the cryptocurrency market experienced a slight cooldown, with its total market capitalization dropping by 1.14% to $2.76 trillion, as reported by Coingecko. This adjustment comes after significant movements in recent days, particularly with Bitcoin and Ethereum encountering resistance levels.

Bitcoin striving to surpass the $70,000 mark

Bitcoin, the foremost cryptocurrency globally, has been striving to surpass the $70,000 mark. However, this threshold has proven to be a formidable resistance, often leading to corrections that impact the broader crypto market. Today, Bitcoin saw a 1.2% decline, reaching a peak of $71,754 before retracing to $69,793. Despite this dip, Bitcoin’s overall trajectory remains bullish as it continues to recover from a flash crash on BitMEX that saw its price drop to $60,760.

The current daily candlestick hints at a potential correction, yet the overall trend remains positive. Bitcoin’s price is above its EMA10, indicating a positive signal as it implies investors who bought in the last 10 days are seeing gains. With 97.7% of BTC addresses currently profitable according to IntoTheBlock data, some short-term traders may contemplate capitalizing on their profits, while long-term holders may opt to retain their tokens to observe market behaviour. The recent market cooldown has brought equilibrium, reflected in indicators such as the relative strength index (RSI), standing at a slightly bullish 58, compared to the 72 points noted on March 14. This could pave the way for safer bullish bets, considering market sentiment.

The average directional index (ADX) has decreased to 30 points, signalling sustained bullish sentiment but with increased trader caution, leading to less extreme upswings compared to prior days. Bitcoin’s immediate support lies around $67,800, established by the EMA10, while resistance is anticipated between the psychological $70,000 zone and the all-time high of $73,794.

Ethereum encounters significant resistance

Ethereum, the second-largest cryptocurrency by market capitalization, mirrors Bitcoin’s behaviour. Currently trading at $6,543, Ethereum surged to $3,663 before correcting to $3,495 today, marking a 1.35% decrease in the past 24 hours. Over the last three days, Ethereum has encountered significant resistance at $3,660, signalling increased stability and posing challenges for scalpers and day traders considering long positions.

Ethereum’s bullish trend persists, although the narrowing gap between the EMA10 and EMA55 suggests a potential price correction. The RSI has dropped to 52, indicating market indecision without clear dominance from bulls or bears. The ADX, currently at 38, coupled with a squeeze momentum indicator, suggests bears are reluctant to yield to a price rebound, indicating lingering effects from the correction beginning on March 12, which saw Ethereum’s price drop by nearly 25% from $4,095 to $3,059.

While Bitcoin and Ethereum encounter resistance at critical levels, their overall trajectories remain bullish. However, traders considering short-term long positions should exercise caution, as recent corrections may impede the coins’ progress towards new price discovery zones.

Author: Simeon

Simeon is a seasoned crypto writer with a passion for exploring the fascinating world of blockchain and digital currencies. With a background in finance and technology, Simeon brings a unique perspective to his writing, delving into the complexities of decentralized finance, cryptocurrency trading, and emerging blockchain projects.