The major cryptocurrencies behave steadily over the critical supports
Bitcoin and other top cryptocurrencies made modest gains in the middle of the week during the Asian session. And even when Ethereum traders still digest the news that the US Securities and Exchange Commission (SEC) said the coin is not a security under US law. But the capitalization of the crypto market remains almost unchanged at $ 134 billion.
Crypto investors also took note of a move by Thailand’s securities regulator, giving green light to the first ICO portal in the country. Currently, however, the portal remains unnamed.
Among the ten largest cryptos we saw a sea of green, although some coins did better than others. Leading for the day was Binance Coin, which rose 6.26% on Tuesday.
While Binance Coin stole the show, Litecoin managed to find its feet after the Monday sell-off. Now the fourth-largest digital asset with a market capitalization of $ 3.45 billion is tradingd at $ 56.40. That’s about 5% higher than at the same time on Tuesday.
Bitcoin (BTC) remains in the middle of the trading range between $ 3,800- $ 3,900. The price hit a critical resistance of $ 3,903 yesterday, but the momentum quickly disappeared. At the moment, BTC/USD has gained about 1% in the past 24 hours and is trading around $ 3,877.
Bitcoin’s daily technical picture
We do not have large expected events and news to provide directions the day ahead. So, let’s take a look at Bitcoin’s technical picture.
$ 3,900 is the main barrier that separates the coin from another attempt to progress to $ 4,000- $ 4,200. However, a sustainable move to $ 4,000 seems less likely at this stage, as the market lacks momentum.
Support from the broader market will be needed to keep Bitcoin above $ 4,000. The chances are that BTC will continue to fluctuate in the current trading range.
On the downside, the first support is $ 3,850. It is created by a confluence of SMA50 and SMA100 (1-hour chart). If the bears can make a clear break below it, the sale can be extended to $ 3,800 (the lower boundary of the above-mentioned range and near the bottom of Tuesday).
Still, if Bitcoin’s price could move and hold steady over $ 4,000, it would be a clear indication that the bulls have gained market control and I expect to enter in a stable upside recovery rally.
Author: Silviya Velcheva
* The views expressed in this material do not constitute a recommendation or advice for the purchase or sale of cryptocurrencies in the digital assets market or other financial instruments. The predicted forecasts meet the expectations of the author of the material and may not materialize. Trading in currencies, contracts for differences on margin or cryptocurrencies poses a high risk and may not be suitable for all investors. Past results are not a guarantee of future success.