Bitcoin shed some of the gains made earlier in the day, erasing $40 from its daily high at $6,500. The BTC/USD pair trades at $6,460 in a ranging market with support at $6,300. A significant bearish trend line may have been thwarted as the market moves above the $6,400 line.
Bitcoin Trades Above Significant Bearish Trend Line at $6,400
A somewhat uneventful BTC/USD trading day saw bulls and bears dispute the price in early Monday. Bulls won the battle as the $6,365, $6,375 and $6,400 resistance levels were suppressed in an upside push towards the $6,500 high, according to data from Investing.com.
The market was able to break above “a major contracting triangle with resistance at $6,350 on the hourly chart of the BTC/USD pair,” according to NewsBTC analyst Aayush Jindal. “Later, the price started a downside correction and declined below $6,440”, he added. The BTC/USD pair has a nearby support at the $6,380 level, followed by $6,398-6,400, $6,375, and the 61.8% Fib retracement level of the recent wave from the $6,323 low to $6,472 high, according to the analyst.
Looking at a wider timeframe, the Bitcoin market has become quite still, when compared to the volatile days of late 2017 and early 2018. No wonder Thejas Nalval and Kevin Lu, portfolio director and director of quantitative research at Element Digital Asset Management, said in October that trading has almost become boring.
“We think the market has quite simply just run out of juice for now. It’s almost become boring. Seems like everyone is waiting on the sidelines for someone else to make the first move in what could be an extremely long game of chicken.”
They argued that the decreased volatility may be due to the adoption of Bitcoin as a store of value. Although still premature, the theory may turn out to be true. Bitcoin has a market cap of $111 billion, which is about a third of what it achieved on December 17, 2018. Another theory presented by the analysts from Element is that “Bitcoin price discovery is becoming more efficient due to more natural demand and natural supply.”
The cryptocurrency market had a mixed trading day.
Ethereum (-0.23%), Bitcoin Cash (-1.10%), Litecoin (-0.66%), and Monero (-0.46%) eased slightly during the day, while Ripple (+4.65%), EOS (+0.21%), Stellar (+1.30%), Cardano (+1.17%), and Tether (+3.86%) moved higher in the last 24 hours. The overall performance during the last seven days has been positive for most digital currencies in the top by market cap.
Dogecoin, rank number 24 with a market cap of $424 million, had a difficult week as its price moved lower from $0.0039 to $0.0036, an eight percent drop in a week. In the last 30 days, DOGE has lost over 37% of its value. Having reached a market cap of $793 million on September 11, 2018, the digital currency’s market is now worth little more than half.
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