Bitcoin Struggles To Hold $40K As Crypto Tracks US Stocks


Crypto is once again reflecting equity market gains today, with Wall Street’s sharp climb after opening higher is likely to provide further momentum for Bitcoin. Last Friday, the crypto market saw a significant decline in correlation with US indices.

Bitcoin and Ethereum, the major players in the crypto market, gained 2% in the past 24 hours. The combined capitalization of both cryptos reached nearly $1.2 trillion today, with total crypto market capital of $1.9 trillion.

Related literature | Ethereum Trading Below $3,000 Support, Why Is ETH Dropping Since November?

The crypto markets are seeing a broad recovery as stocks continue their upward trajectory. The BTC/USD pair is trading above $40,000 while ETH/USD has gained ground close to the $3,000 resistance level. Both coins are gaining amid this positive trend for all assets.

The S&P 500, Dow Jones Industrial Average and Nasdaq Composite are all up today. The S&P 500 is up 2.3%, the Dow Jones Industrial Average is up 1.7% and the Nasdaq Composite is leading the gain at 2.8%. This happened as Asian and European equities had a good day ahead of the US Federal Reserve’s 0.5% rate hike.

Bitcoin and Ethereum still look bullish

Bitcoin price remains well above $38,000, but it is nearing another major supply wall of $40,000. However, this could mean that the bulls still have some strength and could move higher soon.

After testing $39,926, Bitcoin is currently trading in the red below $39,000 | Source: BTC/USD chart of Tradingview.com

According to Altcoin Sherpa, a crypto trader and analyst, “the market structure looks bullish.” he continues added

As long as these lows are maintained and we are still seeing higher lows, I think the bullish market structure is still intact. Still thinking 55k+ in the coming weeks.

While commenting on Ethereum’s prediction, Altcoin Sherpa said;

Unlike $BTC, ETH is still well above its latest lows and still has a bullish market structure (btc does too, but it’s closer). Would love to see a higher low formed for #Ethereum. However, I think it’s still at the mercy of BTC, as always – if BTC tankes, so will ETH.

Related literature | TA: Bitcoin Key Indicators Suggest Strengthening Before Decent Rise

“Bitcoin could go higher,” said Rekt Capital, one of the top crypto analysts. the analyst said

Bullish Divergence on the 4 o’clock starts to play out. The main resistance in the very short term will be this red area [above $40,300]† Converting to support as in the previous yellow circle would be a bullish sign for the trend to continue.

Bitcoin has been below the 100-day moving average for a few weeks now. The price was supported by $37,000 and the bearish trendline. This has reduced the bearish momentum. The $37,000 mark has become a major prop for Bitcoin. If it falls below that, the price could drop to $30,000.

Featured image from Pixabay and chart from Tradingview.com



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