The cryptocurrency market has not been doing well in the past days. Total market capitalization is currently sitting at the $380 billion levels after hitting a wall at $500 billion. Bitcoin dominance over other cryptocurrencies is slowly increasing, reaching the 41.8% mark as of press time. With the first two weeks of March being tough for the cryptomarket, here are some updates on the price actions of Bitcoin and Ethereum.
Bitcoin Struggling to Continue Uptrend
Bitcoin broke below the critical support of $9,500 levels and hit an intraday low of $9,000. This is below the 50% Fibonacci retracement of the recent pullback from $6,075.64 to $12,172.43. The bulls bought the dip and pushed the prices back above $9,500. The BTC/USD pair is still not out of the woods because it is still trading inside the descending channel.
If the bulls sustain above the $9,500 levels, a range bound action is likely to ensue where we can expect bulls and the bears to battle it out between the $9,500 and $12,200 levels.
On the contrary, if the bears again break below yesterday’s low of $9,000, the price might fall towards the 61.8% of the $8,404 retracement level. In this scenario, it is best to see clarity and strong support levels before deciding on your trading activity.
Ethereum Takes Massive Hit
On the ETH/USD pair, Ethereum fell to $637, but is currently attempting a pullback with bulls buying the dip. At the moment, Ethereum price is $710, but is still trading in a downtrend as the price is hovering inside the descending channel and below both the moving averages. Any rebound from the current levels is likely to face selling pressure at one of these resistance zones. It is bear’s advantage until the bull breaks out and sustain above the resistance.
While the Ethereum community remains bullish because of its huge potential innovations and many real-world applications, the market sentiment appears to be overtaken by the bears.
Wild rides of uptrends and downtrends are typical of the cryptocurrency market. While the market appears to be consolidating at the moment, we are yet to see clear signs of market recovery. It may take a while before we see cryptos pushing again for all-time highs.