Markets Update: Cryptocurrencies Test Key Levels From 2017 Bull Trend
The cryptocurrency markets are trading at significant long-term price areas, with BTC currently channeling between key levels from the 2017 bull run. In other market action, BCH and ETH have continued to consolidate above the $100 area.
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BTC Trades Between Major Long-Term Price Zones
For the last two months, BTC has established a price range corresponding to areas of long-term significance.
As of this writing, bulls are attempting to establish support at roughly $3,600 after bouncing off what may comprise a higher low at the $3,400 area. During 2019 so far, BTC is yet to re-test last year’s low of roughly $3,100, nor has price action broken above resistance at $4,400.
When looking back to mid-2017, the price levels correspond to key areas from BTC’s first run up to $5,000, in addition to the subsequent retrace and rally to five digits.
During the initial run to $5,000, BTC stair-stepped its way from $3,200 to $3,400 before jumping to establish a then-record high at roughly $4,400. BTC then established local support at $3,600 and then rallied to set a new record at $5,000.
After tagging $5,000, the $4,400 area comprised the shoulder line of the lopsided head and shoulders pattern that preceded the violent retracement down to $3,000. BTC currently has a market cap of $63.55 billion and a dominance of 52.9%.
BCH Consolidates Above 2018 Low
Bitcoin Cash is consolidating at a possible higher-low, with BCH currently trading for $119 after bouncing off support at $100. Despite the sideways price action, BCH has broken outside of multiple major descending trendlines in recent weeks.
When measured against BTC, BCH is also consolidating above 2018’s low, with bitcoin cash currently trading for 0.0335 BTC. Bitcoin cash is currently the sixth largest cryptocurrency with a market cap of $2.14 billion and a dominance of 1.78%.
Ethereum Reclaims Second Largest Market Cap
Ethereum has also spent recent months trading between key price levels from ETH’s first break into triple figures during mid-2017.
After reaching a low of $80 in December, ETH rallied to test resistance at approximately $175 at the start of 2019, with the markets having since retraced to establish local support at $100.
When measured against BTC, ETH has again oscillated between significant long-term price zones, with ETH currently attempting to establish support at the 0.0333 BTC area, the market’s former record high that was established during March 2016 before being broken one year later.
ETH currently comprises the second largest crypto asset with a market cap of nearly $12.73 billion and a dominance of 10.50%.
What do you make of current market structure? Are predicting 2019 to be bull or bear? Share your thoughts in the comments section below!
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