On Saturday evening, the price of Bitcoin (BTC) rapidly rose from $7,300 to $8,000, and by Sunday evening, Bitcoin (BTC) tested resistance at $8,300 but was pushed back. The uptrend over the weekend recovered the losses from Thursday’s flash crash that saw Bitcoin (BTC) drop from $7,700 to $6,200 within minutes before stabilizing near $7,300.
Since testing the $8,300 resistance level Sunday evening, Bitcoin (BTC) pulled back to as low as $7,600 at 9 a.m. this morning. Since then, Bitcoin (BTC) has been steadily rising and is currently trading just above $8,000. The stock market being in the red today — with the Dow Jones Industrial Average (DJIA) down about 100 points on the day — may be helping the crypto markets.
The key resistance level to watch is $8,300-$8,400. This resistance level has been tested twice this month, and zooming out, this resistance level has been in place since June 2018. In particular, a rally that started at $6,200 in July was halted at $8,300. If Bitcoin (BTC) can break past the $8,300-$8,400 resistance level, a rally is possible.
Currently, support levels reside at $7,600 and $7,000, and these are the levels that must hold in order to prevent a resurgence of bear sentiment.
The crypto market is generally in the red but two major cryptocurrencies are breaking the trend. Dash (DASH) is up 6.8% and NEO is up 6.8%. Cardano (ADA) and Monero (XMR) have also managed to rise up into the green with gains of 0.7% and 0.3% respectively after spending most of the day in the red.
Ethereum (ETH) is down 1.1%, Ripple (XRP) is down 2%, Bitcoin Cash (BCH) is down 1.6%, EOS is down 1.3%, Litecoin (LTC) is down 2.6%, Binance Coin (BNB) is down 0.5% but still trading near its all-time high, Stellar (XLM) is down 2.4%, Tron (TRX) is down 0.5%, IOTA (MIOTA) is down 1.8%, Bitcoin SV (BSV) is down 3.8%, Tezos (XTZ) is down 5.2%, Cosmos (ATOM) is down 3.6%, and Dogecoin (DOGE) is down 2.6%.
Although most major cryptocurrencies are in the red at this moment, if the uptrend which started this morning continues then most major cryptocurrencies should move up into the green. Further, the losses over the past 24 hours are only putting a slight dent in the gains from the weekend.
The total crypto market cap is currently $250 billion, up from $239 billion this morning when Bitcoin (BTC) approached support at $7,600. This is 150% above the bear market low of $100 billion in December.