The upwards momentum in the cryptocurrency market appears to have stalled following the otherwise promising push higher seen since Monday.
Bitcoin (BTC) has traded in a tight range around the current strong resistance level over the past 36 hours, which suggests the bulls are losing strength.
Looking at the past price movements, the keen recovery from the previous week’s flash crash initially provided the much needed lift for the digital coin to surge up towards mid US $54,000, then crawling slowly above US $55,000, which is where it met some serious resistance that slowed the uptrend.
Despite rejected at this level, the subsequent downtrend has not been that intense and was still trading around US $55,000 at press time.
There is pretty strong support around the US $52,000 mark and further down at US $47,000 if the current pullback intensifies in coming days.
The entire cryptocurrency market has almost been closely moving in lockstep with bitcoin throughout the past several days and they also appear to be running out of steam.
Ether (ETH) is still holding close to its all-time high at US $2,684 with the upside push mostly stalled. The second largest digital crypto surged last night after Bloomberg cited unnamed sources as saying the European Investment Bank (EIB) plans to issue a digital bond sale on the ethereum blockchain network.
Among the other free-floating digital.coins in the Big Cap 10, ripple (XRP) is changing hands at US $1.36, Binance Coin (BNB) US $561, cardano (ADA) near US $1.28, Dogecoin (DOGE) US $0.31, ChainLink (Link) US $36, Stellar (XLM) $0.49, Litecoin (LTC) US $255 and Vechain (VET) US $0.20.
At this point although most major coins are facing the resistance where sellers have lined up, slowing further ascent, positive traction is still possible if strong consolidation at the current levels persist.
This is especially the case as the bullish outlook remains intact for the medium run and a short-term pause to the current uptrend in stocks, given a more than 10% surge materialized over the past days, shouldn’t be a surprise.