The Cryptocurrency Market Rallies With Strong Correlations Between the Major AssetsMay 31, 2018, 5:27PM
The cryptocurrency market is up again today, and this strong rally makes for three consecutive days of price appreciation.
The cryptocurrency market is up again today, which makes for three consecutive days of price appreciation. However, while the market is rising, transaction volumes remain low for most of the major assets. The technical set up looks pretty good, but investors shouldn't get too hopeful in what is clearly a bear market.
Right now, the total cryptocurrency market cap sits at $333 billion with Bitcoin dominance stable at 38.8% of the total. The correlation between Bitcoin and the other assets remains strong.
Bitcoin Technical Analysis
Bitcoin prices have recovered to around $7,550 following a brief dip below the $7,300 mark. Right now, the market expects resistance around the $7,870 level, and this point could be reached within 24 hours. If the $7,870 level is breached, we may see a rally to the important psychological level of $8,000. But while the technical setup looks very bullish in the short term, investors should remain cautious. We are still in a bear market, and the Bitcoin price moving averages continue to show a bearish bias. If the bulls fail to gain momentum, the market could see a drop down to $6,900 and below.
Ethereum Technical Analysis
Ethereum is up by a little under 4% in the last 24 hours on pretty low transaction volume. Ethereum, along with most of the top 10 assets are heavily correlated today, and all of them are displaying similar price movements.
Big movers in the top 100 assets include Nuls (NULS), and Huobi Token (HT), the native token of the Huobi Digital asset exchange. Both tokens are up by low single digits. Dentacoin (DCN) and Polymath (POLY) are both down by single digits and display a striking lack of correlation with the rest of the market. These moves don’t appear to be news driven.
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.