The crypto currency market has been bullish for the past 48 hours. However, gains related mainly to the improvement of the technical picture across the board, however, were unsustainable. Most analysts believe that because of the low volume, the breakthrough on Monday and Tuesday cannot be contained. And that’s why the market is sliding back into the red this morning, led by the first three crypto currencies – Bitcoin, Ethereum and Ripple.
Bitcoin dominance continues to decline, giving the Altcoins more breathing space
Bitcoin has dropped 2.71% in the last 24 hours. Yesterday, the price suddenly retreated from the high around $ 8,500. The negative price action continued in the Asian session today, with BTC touching the intraday low of $ 8,154.6 for the moment. The main crypto currency will have to go back above the morning high at $ 8,327.4 to support the rally to the nearest resistance of $ 8,350. A clear breakout above this level will open the door to the bulls for re-testing $ 8,500.
At the beginning of the month, the total market capitalization of cryptos fell from a peak on Monday of $ 226.12 billion to the bottom of $ 219.94 billion. At the time of my writing, the total capitalization of the crypto market was $ 221.15 billion. And the moderate loss of Bitcoin yesterday led to a slight increase in its dominance. At the time of writing, the dominance of BTC is 67.8%.
In October, the next key period for Bitcoin and the crypto market will be in the middle of the month. This is the SEC’s deadline for approving or rejecting the Bitwise Asset Management’s Bitcoin ETF proposal.
Daily technical analysis of Stellar Lumen and Tron
For the remaining 10 crypto currencies, Tuesday ended mostly in red. Stellar and Ripple led the way down, sliding 5.4% and 4.76% respectively.
Stellar (XLM), which intends to remove its inflation function in the upcoming upgrade, has been struggling to keep its gains from the last 7 days. The coin rose by a modest 5.33% last week and was trading at around $ 0.060 at the time of publication.
The digital currency will have to break through this level in order to keep the upside momentum to the first resistance at $ 0.06222 (yesterday’s high). In the case of a broad-based rebound in the market, the $ 0.06505 level could be back in the game before we see any pullback. If the price fails to move well above 0.0600, we can see Stellar Lumen struggle throughout the day with testing of $ 0.05657 support.
Similarly, Tron (TRX) continued its bearish sentiment today as it dropped from $ 0.0148 to the intraday bottom of $ 0.0137. The daily chart shows us that the market found strong resistance around $ 0.0185 (double high since September) and support in the area at $ 0.0116. The MACD indicator, however, signals a reversal of momentum from the bearish to bullish. Immediate resistance is the 50-day Simple Moving Average (localized at 0.0160). There is also a downside trend line on the daily chart. A clear break above this area will be required to confirm the bullish momentum.
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.