Bitcoin (BTC) is relatively stable today and trading in a narrow range between $3,580 and $3,620. Overall, Bitcoin (BTC) has been on a slight downtrend since the rally on Feb. 8, which brought it up to a high of $3,700.
The slight downtrend over the past few days indicates that buy support is slowly being eaten away near the $3,600 level, making a downward movement possible. Further, after the January CME Bitcoin futures expiration Bitcoin (BTC) was in the $3,500-$3,600 range. The data from this month so far indicates that short sellers are dominating, and if that is the case a move below the CME expiration level is possible.
The long term support level for Bitcoin (BTC) is $3,100, which is near the bear market low reached in mid-December. The resistance level appears to be at $3,700.
Despite Bitcoin’s (BTC) lack of volatility, some other major cryptocurrencies are showing volatility today. Litecoin (LTC) is down seven percent, ending an impressive 40 percent rally, while Dash (DASH) is up nine percent.
Besides Dash (DASH), Ethereum (ETH) is up 0.5 percent. Ethereum (ETH) has moved ahead of Ripple (XRP) on CoinMarketCap, although this may be temporary if the Constantinople hard fork causes anxiety among traders, users, and investors. Already, the difficulty bomb has caused block times to exceed 20 seconds on the Ethereum (ETH) network, which may lead to higher transaction fees and will certainly lead to decreased revenues for miners.
Several other major cryptocurrencies besides Litecoin (LTC) are in the red today. Ripple (XRP) is down 1.1 percent, Bitcoin Cash (BCH) is down 2.5 percent, Tron (TRX) is down 5.1 percent, Stellar (XLM) is down 3 percent, Cardano (ADA) is down 0.4 percent, Monero (XMR) is down 1.4 percent, IOTA (MIOTA) is down 2.3 percent, and Dogecoin (DOGE) is down 1.4 percent.
The total crypto market cap has been between $121 billion and $122 billion today and has not moved in any particular direction, likely due to Bitcoin’s (BTC) relative stability and the bulls and bears in the altcoin market canceling each other out.
The current total crypto market cap is well above the $100 billion market cap we saw during the bear market low, but a re-testing of this low is still not out of the question. It is a wait and see game whether the crypto market bottom is really in because the bottom is only something that can be determined in hindsight once a consistent long term rally is underway.