Crypto Market Update: Bitcoin face a brick wall on approach to $7,000
|- Bitcoin and other altcoins are range-bound with a bearish bias.
- The first digital asset cannot clear critical resistance.
- The market sentiments are dictated by COVID-19 situation.
The cryptocurrency market has calmed down on Wednesday as Bitcoin and all major altcoins stayed in the ranges after a volatile start of the week. While the upside momentum has faded away, many coins settled above critical support levels broken during the recent recovery. The total market capitalization hit $185 billion, while an average daily trading volume on the cryptocurrency market settled at $141 billion. Bitcoin's market dominance is registered at 65.4%.
Top-3 coins overview
BTC/USD hit the recent high at $6,983 and retreated to $6,700 by press time. The coin settled above a strong barrier of $6,000; however, a move below $6,500 will postpone another attempt at $7,000. This resistance area is reinforced by SMA100 weekly at $7,150. BTC/USD has lost nearly 2% in recent 24 hours after 12% growth on Tuesday.
ETH/USD is hovering around $136.50 after a failed attempt to settle above $142.00. The second-largest digital asset is following Bitcoin's lead and may proceed to $150.00 if Bitcoin takes out $7,000 and the market sentiments are improved. ETH/USD has lost 2% in recent 24 hours and over 3% since the start of Tuesday.
XRP/USD hit the intraday high at $0.1659 only to return below $0.1600 by the time of writing. XRP stayed unchanged on a day-to-day basis and lost 3% since the beginning of the day. The initial support is created by $0.1500.
What's going on on the market
The market is preoccupied with the economic and financial risks triggered by COVID-19. As more countries announce full or partial lockdown, the fears a growing that the global economy may grind to a halt. While many cryptocurrency enthusiasts believe that this crisis will become a moment of glory for Bitcoin, the current situation is full of uncertainty that may work against digital assets in the short run.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.