Cryptocurrency market today saw mixed price action as five of top ten cryptocurrencies traded in red following weekend’s positive price rally. Both Bitcoin and Ethereum saw sharp two-way price action as despite being trapped inside familiar price levels. While both assets showed highly active performance they are yet to breach past psychological price levels. Crypto market is made up of assets which are decentralized in nature and hence price action is purely determined by news and events in the market as opposed to fiat currencies which are backed by particular economies. The however recent entry of crypto assets into the mainstream financial market, regulatory crackdown and multiple failed attempts to get crypto coins based financial assets approved by regulatory bodies have resulted in market trading dovish.
Cryptos Trade Flat Post Attempts To Regain Weekend Highs
The further market also lacks fundamental support as most traders and investors have gone away from market resulting in Bitcoin and other major cryptocurrencies stagnating near multi-month lows. Any attempt to recover above critical price levels keep ending in failure as the market lacks necessary participants and fund flow to sustain a rally which has created a prolonged scenario of a bearish price move. This is clearly evident from the price action of bitcoin over last three trading sessions which saw yet another dead cat bounce price move. BTC/USD pair today made an attempt to move above mid $3400 handle but failed to sustain momentum resulting in price falling back to the lower half of $3400 price levels. As of writing this article, BTCUSD pair is trading at $3439.9 down by 0.34% on the day. In immediate future, the pair faces strong resistance near $3,450-60.
The pair needs to breach above-mentioned price range and establish a solid price rally for any hopes to recover critical resistance at $3500 handle. Similar to Bitcoin, Ethereum managed to see a positive burst of activity in the weekend and the pair breached $110 handle but profit booking activity saw all gains being erased by end of yesterday’s trading session. The ETH/USD pair is trading flat near previous session lows having made another failed attempt to reach $110 handle earlier in the day which reached as high as $109.06 price handle. Given clear lack of fundamental support and fund flow required to sustain a rally, price action is expected to remain trapped within range for rest of the week despite possibilities for multiple dead cat bounce price rallies.
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This article was originally posted on FX Empire
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