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Cryptocurrency Market Sees Minor Correction
The cryptocurrency market experienced a slight cool-down recently, with the total market capitalization dropping by 1.14% to $2.76 trillion, as reported by Coingecko. This correction follows a period of significant movements, particularly for Bitcoin and Ethereum, as they encounter resistance at crucial levels.
Bitcoin’s Performance
Bitcoin, the leading cryptocurrency globally, has been striving to surpass the $70,000 mark. However, this level has proven to be a formidable resistance point, often leading to corrections that impact the broader crypto market. Today, Bitcoin saw a 1.2% decline, reaching a high of $71,754 before correcting to $69,793. Despite this dip, Bitcoin’s overall performance remains bullish, bouncing back from a recent flash crash on BitMEX that drove the price down to $60,760.
Bitcoin’s current daily candlestick indicates a potential correction, although the overall trend remains positive. The coin is trading above its EMA10, a positive indicator suggesting that recent investors are seeing gains. With 97.7% of BTC addresses currently profitable according to data from IntoTheBlock, short-term traders may be considering taking profits, while long-term holders may be opting to retain their holdings to monitor market behavior.
Technical indicators show a balanced market, with the RSI slightly bullish at 58, signaling a stable market sentiment compared to previous days. The average directional index (ADX) at 30 points indicates cautious trading, with support around $67,800 and resistance between $70,000 and $73,794 if bullish momentum continues.
Ethereum’s Behavior
Ethereum, the second-largest cryptocurrency by market capitalization, is mirroring Bitcoin’s actions. Currently trading at $6,543, Ethereum surged to $3,663 before correcting to $3,495. Despite being down 1.35% in the past 24 hours, Ethereum faces strong resistance at $3,660, showing a more stable pattern.
Ethereum’s bullish trend remains, although the narrowing gap between EMA10 and EMA55 suggests a potential price correction. The RSI at 52 indicates market indecision, with bears not conceding to a price rebound. The ADX at 38, along with a squeeze momentum indicator, reveals ongoing struggle post-correction from March 12, when Ethereum’s price plunged nearly 25%.
While both Bitcoin and Ethereum encounter resistance at critical levels, their overall bullish trends persist. Traders considering long positions on short timeframes should exercise caution, as recent corrections may impede the coins’ progression towards new price discovery zones.
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