Bitcoin Struggles to Hold $40,000 as Crypto Tracks US Stocks
The crypto is again mirroring equity market gains today, with Wall Street’s sharp rise after the higher open likely to give Bitcoin further momentum. Last Friday, the crypto market saw a significant decline correlating to US indices.
Bitcoin and Ethereum, the major players in the crypto market, have gained 2% in the past 24 hours. The combined capitalization of the two cryptos has reached nearly $1.2 trillion today, with the total crypto market capital at $1.9 trillion.
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Crypto markets are enjoying a broad recovery as stocks continue their upward trajectory. BTC/USD is trading above $40,000 while ETH/USD gained ground near the $3,000 resistance level. Both coins are gaining amidst this positive trend for all assets.
The S&P 500, Dow Jones Industrial Average and Nasdaq Composite all rose today. The S&P 500 is up 2.3%, the Dow Jones Industrial Average is 1.7% higher and the Nasdaq Composite leads the rise with 2.8%. This came as Asian and European equities had good days ahead of the US Federal Reserve’s 0.5% interest rate hike.
Bitcoin and Ethereum still look bullish
Bitcoin price is holding well above $38,000, but is about to hit another key supply wall at $40,000. However, this could mean that the bulls still have some strength and could push higher soon.
According to Altcoin Sherpa, a crypto trader and analyst, “the market structure looks bullish.” He additionally has added;
As long as these lows hold and we still see higher lows, I think the bullish structure of the market is still intact. I’m still thinking about 55k+ in the coming weeks.
While commenting on the Ethereum prediction, Altcoin Sherpa said;
Unlike $BTC, ETH is still decently above its latest lows and still has a bullish market structure (btc too but it’s closer). Would like to see a higher low formed for #Ethereum. I think it’s still at the mercy of BTC, as always – if BTC tanks, so does ETH.
Related Reading | TA: Key Bitcoin metrics suggest strengthening the case for a decent rise
“Bitcoin could go higher,” said Rekt Capital, one of the top crypto analysts. The analyst mentioned;
The 4-hour bullish divergence is playing out. The main resistance in the very short term will be this red zone [above $40,300]. Turning it into support as in the previous yellow circle would be a bullish sign for the continuation of the trend.
Bitcoin has been below its 100-day moving average for a few weeks. The price was supported by $37,000 and the downtrend line. This dampened the bearish momentum. The $37,000 mark has become an important support for Bitcoin. If it drops below that, the price could go down to $30,000.
Featured image from Pixabay and chart from Tradingview.com