Cryptocurrency market is seeing yet another attempt by bulls to scale critical price levels today. While major cryptocurrencies saw consolidative and corrective price rally during Pacific-Asian market hours, the market saw bulls push for another positive price run during early European market hours. This move saw bulls erase all loss from early decline and move back above critical price levels which have acted as critical resistance levels to the upside since last weekend. Bitcoin moved above $5000 handle while Ethereum moved above $160 handle post which both cryptocurrencies saw rangebound price action slightly higher than above-mentioned price levels through rest of European market hours.
Corrective Rally & Profit Booking Erases Billions From The Market
If both BTC/USD and ETH/USD see price action move steady above the critical price handles mentioned above, the scenario will be viewed as both the crypto coins having found stable foothold over $4000 & $150 handle and are preparing to scale next long term target of $6000 & $180 respectively. As cryptocurrencies go crazy and see a sharp upward surge breaching multiple key resistance along the way, overall market capitalization of cryptocurrency market is also growing vastly. During the sharp upsurge to new 2019 highs earlier this week, overall market capital rose to US $185 billion, it has since receded and is currently near $175 billion as profit booking activities and corrective price action post sharp gains earlier this week has wiped out more than $10 billion from the market.
But compared to recent past, and the rate of growth in Bitcoin and other legacy cryptocurrencies, a full-fledged recovery rally with stability above $5000 handle and $160 handle in Bitcoin and Ethereum could see the lost value get restored in the market in less than a month. Investors have likely prepared for the chance of sharp growth of market capital and increased trading activity/volume during weekend given history from the recent past. It is essential that market sees both Bitcoin and Ethereum maintain the pace of ongoing rally for quite some time in immediate and near future trading session with rally gaining stability over the gains made for the scenario to recover back losses from the latter half of 2018 and see further gains. The weekend ahead is likely to be highly active with significant level of trading volume regardless of which direction the price of both pairs see as a failure for bulls to continue riding the wave will result in market losing all gains made so far this week, leaving the price action in Bitcoin and Ethereum back at $3800/$3900 and $130/$140 handles respectively.
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