The Crypto Market Remains Stagnant: Technical Patterns are Uncertain
May 30, 2018, 6:00PM
Where is the cryptocurrency market going from here? It's hard to tell, but the market-wide upside that started yesterday seems to have plateaued.
Where is the cryptocurrency market going from here? It's hard to tell, but the market-wide upside that started yesterday seems to have plateaued without breaking into a meaningful rally for the top 100 assets.
Today, most of these assets are up by single digits, and the sector's total market cap has risen to $323 billion. Bitcoin, with its market cap of $127 billion, now represents 39.2% of the total - this is slightly above its previous position. Ethereum and the altcoins are also green today, but the technical patterns remain uncertain.
Bitcoin Technical Analysis
Bitcoin has rallied away from recent lows around $7,000 but prices are now stagnant around the current level of $7,500 (this is the 78.6% Fibonacci). The thirty-minute chart shows signs of a possible bullish flag pattern and potential for another sharp break out past resistance at the May 24 high of $7,730. Support levels can be found at the 61.8% Fibonacci ($7,433) and the 50% Fibonacci ( $7,361). The 50% Fibonacci has proven to be a solid support level, with prices bouncing off this figure several times this month.
Ethereum Technical Analysis
Ethereum is attracting interest due to a hard fork designed to alter the protocol's mining reward system. So far, talk of the fork has not dramatically impacted the volatility of Ether relative to the rest of the market. The Ether price fell by around 11% on Monday but remained above the critical $500 psychological resistance level. Resistance proved strong, and buying activity pushed prices to their current level of $562-575 with a market cap of around $57 billion.
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.
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