Bitcoin rebounded after Fed stimulus boosted investor sentiment
The digital assets in the cryptocurrency market are holding a bullish momentum and trend for a second consecutive day. Monero (XMR) is at the forefront of market recovery. At the time of writing, BTC/USD is moving around $ 6,700. The coin has gained 28.6% of its value in the last 7 days as the crypto market has enjoyed improved sentiment. The sentiment improved even more yesterday after the Fed announced its endless stimulus program to mitigate the economic effects of the Coronavirus.
For most of the other top 15 cryptocurrencies, Tuesday was another bullish day. The XMR of Monero, TAGZ5 and Tezos led the way with gains of 6.13%, 5.80% and 2.56% respectively. Binance Coin (+2.61%), Tezos (+2.56%) Litecoin (+2.51%) and Ethereum (+2.06%) also found strong support.
The market capitalization of cryptocurrencies has increased by $ 14 billion in the last 24 hours, reaching $ 184.5 billion. At the time of writing, Bitcoin dominance is close to 65.3%. Trading volume jumped from $ 130 billion on Monday to $ 168.2 billion on Tuesday before settling down. Early Wednesday morning, 24-hour trading volumes totaled $ 142.77 billion.
Bitcoin manages to settle above a critical support zone
Now, the Bitcoin bulls have a chance to test $ 7,000 and resume growth. However, the stronger resistance is located at $ 7,150. The weekly SMA 100 is nearby, which can stop recovery and cause a downside correction. A clear break above this area will likely drive the price of testing the next $ 8,000 and $ 8,200 targets, reinforced by the daily SMA 100.
On the other hand, a steady movement below $ 6,500 could cause short-term closing of long positions and push the price towards $ 6,000.
Monero (XMR) is at the forefront of market recovery
Monero is one of the best performing altcoins in the crypto market after the price collapse since February 15. This means that if we are to see a recovery, there is now some good potential.
Today the XMR/USD is trading at $ 46.83, slightly backing from $ 47.97 (Tuesday’s high). Despite the slight correction this morning, the bulls are in control of the situation and the trend remains steadily upward. The stability is expected to continue in the next trading sessions, and the bulls will certainly try to push the price above $ 50.
On the downside, yesterday’s bottom of 43.36 should give us the first support. A clear break below this level could extend Monero’s decline to the $ 40 psychological zone.
The MACD indicator shows the confirmation of the purchase sentiment. On the other hand, the RSI indicator rose sharply from 34.01 to 45.50 after the bullish price action on Tuesday.
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.