- Bitcoin climbed over 6% on the day but lost steam short of the resistance at $6,900.
- Market watchers cite short covering as the reason behind the surge.
- Ethereum, Ripple and other coins across the board join in the surge.
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.
Get 24/7 Crypto updates in our social media channels: Give us a follow at @FXSCrypto and our FXStreet Crypto Trading Telegram channel
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Avalanche set to gain wider reach with its Stripe integration
Stripe makes another move by integrating AVAX and Core into its platform. Users can purchase AVAX directly on Stripe, along with dapps and NFTs. The partnership may stir traffic into the Avalanche ecosystem and cause more interest in web3.
BNB price risks a 10% drop as Binance founder and ex-CEO Changpeng Zhao eyes Tuesday sentencing
Binance Coin (BNB) price, like most altcoins, is dumping, with the one-day chart showing a defined downtrend. While the broader market continues to bleed, things could get worse for BNB price.
EigenLayer to launch airdrop in May following the introduction of the Eigen Foundation
EigenLayer announced it would launch season one of its airdrop on May 10. EIGEN tokens would play a key role in the recently introduced "intersubjective forking." Some crypto community members have expressed dissatisfaction with the airdrop vesting schedule.
Ethereum erases weekend gains as yearlong SEC investigation comes to light
Ethereum (ETH) began the week by posting losses of 4.2% on Monday after recent filings from Consensys revealed that the Securities & Exchange Commission (SEC) began formal investigations into ETH's security status since March 2023.
Bitcoin: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s (BTC) recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.