Cryptocurrency Market Analysis, Bitcoin, Ethereum and More: April 3, 2018Apr 3, 2018, 6:01PM
An overview of the cryptocurrency market going into Tuesday, April 3rd, 2018. Bitcoin, Ethereum and the altcoins all post substantial recoveries
The cryptocurrency market has halted its March decline, finding solid support at the start of April before recovering slightly going into Tuesday. All the major assets are flashing green with some posting double-digit rallies. Total market capitalization holds steady at $275 billion with Bitcoin dominance at 45.5%.
The positive sentiment comes in tandem with weakness in the stock market over concerns of a possible trade war between the United States and China. Historically, cryptocurrencies respond positively to geopolitical risk, so investors can look towards this situation as a potential catalyst for momentum in the sector.
Bitcoin prices found solid support around $6,500-7,000 before climbing to around $7,375 Tuesday morning. However, despite the recovery, Bitcoin still trades inside a descending channel and could soon approach a correction area. Right now, resistance is at the 50% Fib of $7,750 and the 61.8% Fib of $8,064. If the resistance levels hold, Bitcoin may resume its downward trajectory.
Geopolitical uncertainty regarding the U.S and China may be the catalyst needed to push Bitcoin past resistance and out of its bearish technical setup.
Ether started April with solid support at $350 and goes into Tuesday hovering around technical resistance at $395 and what looks to be psychological resistance at $400. Despite today's recovery, the asset remains in a long-term bearish pattern, and a convincing break above $400 would be needed for substantial upside momentum.
Several altcoins have posted explosive returns going into Tuesday. The most notable of these are NEM and STEEM which have increased by 17% and 40% respectively. Other good performers include Stellar and the little known Binance Coin - both up almost 20% in the last 24 hours.
Nevertheless, despite across the board rallies in the altcoin sector, Bitcoin Dominance has remained stable at almost half the total market.
Disclaimer: information contained herein is provided without considering your personal circumstances, therefore should not be construed as financial advice, investment recommendation or an offer of, or solicitation for, any transactions in cryptocurrencies.