Despite the fact that over the decade of the cryptocurrency market’s existence, it has adopted many features of classical markets, there remains one key feature that is typical only for it — this is the lightning speed of changes in the prices of key market assets. The point is that after a week of sluggish trading in the range of $18,650 to $19,800, on Friday, BTC “jumped” from $19,400 to $20,592 in just a couple of hours, while the $20,000 mark was overcome in just 50 minutes after the start movement. A similar movement can be seen on the charts of the largest altcoins, as the dominance of Bitcoin also jumped up and exceeded 38%. But don’t forget about the autonomy of alternative coins. Since mid-July, LUNC (formerly LUNA) has almost disappeared from the radar, but over the past month the coin has grown by a fantastic 400% and has already outperformed all meme-coins, including market leaders DOGE and SHIBA. The interest of investors allowed the infamous coin to avoid the fate of the meme-crypto, although many analysts predicted this fate for LUNC. But today we will pay attention to the key market assets and try to figure out the reasons for the unexpected market boost. Is today's movement a breakthrough and what are the chances of coins gaining a foothold at new price levels? Let's see in detail.
During the week, the price of Bitcoin formed support around the $18,550 zone and on Thursday began an upward correction, showing a steady wave of recovery above $19,000. At the same time, on the hourly chart of the BTC/USD pair, there was a break above the key bearish trend line with resistance near $19,200, after whereby the bulls were able to push the price above the Fibonacci 23.6% retracement level of the down move from the $20,172 swing high to the $18,550 low. Immediate resistance for the flagship was at the $19,400 and 100 hourly simple moving average levels, and the bulls successfully cleared it without even allowing the coin to correct. And a couple of hours after the start of the bullish rallies, a position of $20,592 was reached, after which the price rolled back to $20,512 and continued to grow. Now the flagship is trading at $20,652 apiece.
With capitalization paralleling as indicated by the RSI highlighting buying activity, the current bullish boost will look for key support above $20,000 as momentum is likely to be exhausted over the weekend. However, the close of the trading week above EMA 100 will create favorable conditions for key players’ profits, so the movement should weaken, but the bearish scenario should not be expected yet.
In the middle of the week, ETH “failed” and showed a local bottom at $1,500, but on Thursday the asset formed a base, broke a key resistance zone around $1,620 and rose above the 100-hour simple moving average. Early Friday saw a clear move above the 76.4% Fibonacci retracement level of the major decline from the $1,685 swing high to $1,490 low, and the ETH/USDT chart broke a key bearish trendline with resistance near $1,655. Thus, the price of crypto silver has overcome the psychological barrier of $1,700 in just a couple of hours, and now the asset is trading at $1,704.
By the nature of the movement of ETH, we can conclude that, as such, there was no consolidation above $1,700, which is indicated by a correction in the price of the asset, which can return it to the nearest support around $1,660 in the next few hours. But it’s still unknown whether to wait for a further breakthrough, since the overall market boost has clearly weakened. The next major resistance waits for bulls at $1,735, but it doesn't look like it's going to break out at this stage. However, a major price pullback is also unlikely.
BCH sank to $110 in a week, but on Thursday it quickly overcame resistance at $120 and $122. On the 4-hour chart of the BCH/USD pair, there was a break above the main bearish trend line with resistance around $125. The pair broke through the 50% Fibonacci retracement level on a down move from the $148 swing high to the $110 low.Today the $130 mark has been overcome, but serious resistances at the levels of $134 and $135 are still unattainable. At the moment, we are seeing a correction of the asset just above $130.
Any rise above $135 could push the price of the asset to $140 or higher. But if the price doesn't fix at $130, a return to $125 could be very fast. Although, given the RSI indicators, buyers will try to keep the price in the current range.