The cryptocurrency market witnessed a slight cool-down today, with the total market capitalization dropping 1.14% to $2.76 trillion according to Coingecko. This minor correction follows significant movements in the market over the past few days, as Bitcoin and Ethereum face resistance at key levels.
Bitcoin, the world’s leading cryptocurrency, has been attempting to break past the $70,000 barrier. However, this level has proven to be a strong resistance, with breakouts often followed by corrections that impact the broader crypto market. Today, Bitcoin experienced a 1.2% decline, with the coin reaching a daily high of $71,754 before correcting to $69,793. Despite the recent dip, Bitcoin’s overall performance remains bullish, as it continues to recover from a flash crash on BitMEX that caused the price to plummet to $60,760.
Image: Tradingview
The current daily candlestick suggests a possible correction, but the overall trend remains bullish.
Bitcoin’s price is trading above its EMA10, a positive sign for the coin because it signals that, at current prices, any investor that bought in the last 10 days should be in the green. With 97.7% BTC addresses being in the money according to data provided by IntoTheBlock, some short-term traders may be considering realizing their gains, while long-term hodlers may still be compelled to keep their tokens locked and see how markets behave. In terms of indicators, the recent market cooldown has brought balance to the markets. The relative strength index (RSI) stands slightly bullish at 58, indicating a well-balanced market compared to the 72 points registered on March 14, when Bitcoin was trading at a similar price. This may allow for safer bullish bets in strategies that take market sentiment into consideration.
The average directional index (ADX) has dropped to 30 points, signaling that while the bullish mood persists, traders are more cautious, and upswings are not as extreme as in previous days. If Bitcoin fails to gain momentum, immediate support is found around $67,800, set by the EMA10. However, if bullish momentum continues, resistance is expected between the psychological $70K zone and the $73,794 all-time high.
Ethereum, the second-largest cryptocurrency by market capitalization, is exhibiting similar behavior to Bitcoin.
The coin is currently trading at $6,543, having spiked to $3,663 before correcting to a minimum of $3,495 today. Overall, Ethereum is down 1.35% in the last 24 hours. The coin has faced strong resistance at $3,660 over the past three days, with the overall pattern showing more stability. This is not good for scalpers and day traders thinking about opening long positions.
Image: Tradingview
Ethereum remains bullish, but the gap between the EMA10 and EMA55 is closing rapidly, which could indicate a price correction is still in play. The RSI has dropped to 52, suggesting that markets are currently indecisive, with no clear dominance from either bulls or bears.
The ADX (which measures the strength of a trend) at 38. Combined with a squeeze momentum indicator—which guesses the phase of the market cycle an asset is being traded on—it shows bears are still not conceding to a price rebound. It also shows that traders may still be struggling to recover from the correction that began on March 12, which caused Ethereum’s price to crash nearly 25% from $4,095 to $3,059.
While both Bitcoin and Ethereum face resistance at key levels, their overall trends remain bullish. However, traders thinking about opening long positions on short timeframes must be cautious, as recent corrections are strong enough to stop the coins from continuing their path to price discovery zones once again.
Edited by Stacy Elliott.
