The recent Bitcoin price hike, which instantly launched it well above 6000 USD, has led to the entire market experiencing a decent weekend with plenty of green to go around. One of the narratives explaining why this spike happened is related to CME contracts expiring. As soon as the market consolidated the money was diverted into buys, which caused the massive spike in price.
The price exploded over 6400 USD as the result of the spike and has since been experiencing a slow period of sideways movement/consolidation. A clear bearish trend line set just below 6300 was broken through with ease and analysts feel that this recovery could continue short term, potentially going up to 6600 USD resistance levels. If a break above 6500 USD doesn’t happen soon, we might be looking at BTC/USD going back to the current 6000 USD support line and maybe even lower at 5700. Currently the price is at $6,390.78 USD which is a 0.58% rise in the last 24 hours.
No.2 cryptocurrency in the world, Ethereum, somewhat reacted to this Bitcoin breakout. After falling to the low 404 USD it managed to avoid testing the 400 psychological barrier and claw its way back up, reaching 456 USD before moving into a sideways pattern. To move into position to acquire more gains, ETH will need to break this strong resistance of 456 USD, with 475 USD and 500 USD being the next obstacles. However, as it stands, ETH/USD is currently positioned in a rather bearish zone and could look to drop down to 430 from its current price of 453 USD.
No.3, Ripple (commonly known as XRP), had a bit of a mixed bag weekend. After exploding up to 0.47 USD after falling below 0.43 USD and reaching a yearly low at 0.424 USD, it has since experienced a bit of sideways consolidatory momentum, hovering around 0.45 USD. A big resistance has formed around 0.5 USD with the previous low acting as the support line for the token. However, since the FA side of things is still strained, thanks to an impending SEC decision on XRP’s status as a security, we could easily see the ground fall under the token if the news turn out to be negative.
The rest of the market seemed to enjoy the post-breakout sideways movement from Bitcoin, as most coins went into the green over the weekend. Coins like Steem, ICX, BAT, OMG, IOTA, ADA, XLM, STORM, QLC, all experienced solid recoveries ranging from 5-15%. While that isn’t much in the world of crypto, sometimes we gotta take what we are given. The following week will show if we will manage to consolidate and move into an extended period of growth or if we just experienced a fake bounce before a continuation of the current bear trend.