Cryptocurrency market overview: Short covering cited; Bitcoin, Ethereum and Ripple climb

The crypto market is in the green today morning 04:53 (UTC). Most of the coins and altcoins have corrected higher with considerable additions to their value. The bulls in the market are taking control following the declines that sunk the market in the first two weeks of August. The recovery is indeed a welcomed breather to the battered bulls who have for some time now been suffering under the bear’s dominance.

Analysts in the market are citing potential short covering as Bitcoin, the largest crypto in the market surged from trading intraday lows of $6,439.81 to highs of $6,875.10 representing a 6.3 percent rise on the day. Bloomberg reports that according to Timothy Tam, CEO of CoinFi, a cryptocurrency market data analysis firm, the amount of short positions in Bitcoin on Bitfinex exchange has gone up coming close to an all-time high.

“When there’s a record number of shorts, if there’s a large explosive price movement up like this, it means people will need to cover their shorts quite quickly,” Tam said in a phone interview with Bloomberg. “It’s almost like a domino effect.”

Bitcoin price overview

Bitcoin is trading slightly above $6,700 following lower correction to the resistance at $6,875. Bitcoin broke the critical resistance at $6,800 for the first time in weeks, in addition to testing $6,900. At the time of writing $05:09 (UTC), BTC/USD is trading at $6,717, which is a 3.74% rise in value on the day. The technical indicators are sending bearish signals, but the buyers intend to keep the support above $6,700.

Read more on the latest Bitcoin price analysis news here.

Ethereum price overview

Ethereum, just like of the digital assets is correlated with Bitcoin. The crypto sprung in an engulfing triangle using the support at $276, broke the resistance at the broke support highlighted at $280, $285 - $290. The crypto came close to $300 but recorded intraday highs of $298.98 before giving up the mantle to the bears. Bear reactions are currently in progress the time of press, besides ETH/USD is trading at $287.

Ripple price overview

Ripple, on the other hand, is up over 2% on a daily basis. It also spiked from the support at $0.330 and exchanged hands marginally above $0.350. The price is currently trimming gains towards the support at $0.330, although it is currently trading at $0.340. The trend is negative at the moment, and it seems the surge was due to Bitcoin short covering effect and buyers are unable to maintain the levels achieved on the day.