The market after an outstanding performance yesterday has today slowed down. Though some analysts were predicting that this recent rally marks the end of the bearish trend that has lasted over 18 months, there is still reason for investors to be cautious. The slowdown in the last couple of hours come as no surprise gave the recent sudden surge. As with any sudden price change, there comes a price correction.
The total market cap after soaring above $141 billion has now tracked back to settle in around $139 billion. This has been as a result of a drop from around the market. A majority of top coins are recording a drop of under 1% to around 3%.
This drop is significant and in this case a sign of positive momentum setting in. While in the past the drop has sometimes seen most coins lose much of their gains during the price correction, the drop recorded today sees most coins retain much of their gains.
Bitcoin (BTC) And Ethereum (ETH) Price Watch
This is well observed through Bitcoin which rallied yesterday above $4,000 and continued until it met resistance around the $4,070 position. Seeing the coin’s correction has amounted to a drop of less than 1%, Bitcoin is still trading above $4,000. If the coin can establish a $4,000 support position, this will signal a bullish outlook and could boost it during the next rally. Now, the next key target is $4,200, this will be easily achievable with the leader trading above $4,000.
Bitcoin’s dominance remains down, recording a 50.8% dominance at the time of press. This is a sign that investors are still heavily invested in altcoins and could be betting on even further gains in the coming days.
Ethereum, on the other hand, is also in a significant position. The coin is at the time of press, trading for a little over $140. The largest altcoin in the world by market cap needs to stay above $140 or risk going back to its previous set range of between $133 and $138. As long as prices can stay above $140, the next key target for ETH will be $145, with major resistance expected around $150.
The next couple of hours will be key to the market. It is at a point where cryptocurrencies could continue dropping and clean out their gains or quickly find support and possibly continue rallying.