For a couple of weeks, the cryptocurrency market experienced relative stability. The prices didn’t fall or rise significantly. However, on Sunday, the cryptocurrency market gained more than $5 billion when ETH and BTC started rising significantly. This was an unexpected but much-needed recovery.
Cryptocurrencies Gain Significantly Against The USD Along With Global Financial Markets
On Monday, the total market capitalization was about $126.391. This shows that it was up by 4.45% between Sunday and Monday. The top ten coins were trading in green with BTC gained by 3.01%
against the USD. ETH was up by 10% within the same period. Bitcoin Cash recorded the highest gain rising by over 7% within a 24 hour period. XLM and XRP were up by more than 2.80% while EOS was up by 3.5%. While Litecoin (LTC) and Tron (TRX) gained against the USD, the gains were not as significant. LTC was up by 1 1.6% while TRX was up by 0.08%.
The rise in the price of BTC and other cryptocurrencies comes at a time when the global financial market is recording gains. The US-China trade war might be coming to an end with both countries scheduled to meet in Washington again this week. According to Mr. Trump, the trade war might end on a positive note. The president has said that the United States will remove the tariffs on China if they come close to having a deal.
Shortly after the announcement was made, the Asian market started soaring. Shares in mainland China recorded significant gains on Monday and the stock market spiked. On Monday, the stock market in Australia, Japan, Singapore, and South Korea closed on a positive note.
This morning the cryptocurrency market displayed a strong intraday relationship with the Asian stock market. It’s possible that things would continue like this until it gets to the European market. While the Asian market recorded clear gains, the European market started off with mixed price actions. Some were flat while others experienced gains.
BTH, ETH Technical Analysis
As for Bitcoin, an uptrend has been confirmed following the breakout of the bull flag pattern. Against the USD, BTC may test a medium-term falling trendline before a potential rebound. A drop in price volatility and volume may lead to a downside price action before BTC can test the red trendline which is above. If a trend reversal should occur, the Bitcoin to USD pair may find support around the 50-period moving average. At the time of writing, BTC was trading at $3,923.44. This means it is up by 5.01% against the USD. The trading volume over a 24 hour period is $10,011,986,008 and the market capitalization is $68,842,271,040.
ETH is trading at $147.43. This shows that it is up by 7.16% against the USD and up by 1.92% against BTC. The trading volume is $5,306,375,678 and the market capitalization is $15,467,805,908. The price may start deflecting until it gets to $141 before another bull rally will start.
ETH is strongly supported at the 50 period MV. This area has been acting as resistance and support for weeks now. When the price is falling, it supports it. When it is rising, it acts as resistance. Falling below this area would be the start of a major downtrend.