Cryptocurrency Market Update: Bitcoin traders become jittery, more volatility ahead; Ethereum and Ripple follow the lead

Bitcoin price has been able to pass the key resistance level of $9,500 and hit a new high at $9,611. The cryptocurrency market follows the lead of the first digital asset that seems to be on the verge of the pre-halving frenzy. As the major event is less than five days away, the nervousness mixed with FOMO and agitation will grow stronger, creating wild price gyrations. 

Bitcoin’s on-chain data

Currently, over 84% of all Bitcoin holders are making money. The price passed a congestion area of $9,200-$9,450 and headed to a new resistance zone $9,550-$9,85. Over 500k addresses with more than 400k BTC have their breakeven point around those levels. The average transaction size has increased to $28,000, though it is still much lower from the recent peak of $56,000 reached on April 30. The 30-day volatility stays flat around 50%.

Bitcoin is on fire

BTC/USD broke above an important resistance of $9,300 (38.2% Fibo retracement for the downside move from July 2019 high to December 2019 low). If it settles above $9,500, the near-term technical picture will turn bullish and set the stage for a rally towards $10,000. However, this resistance might prove to be a hard nut to crack. It it is not taken from the first try, BTC/USD will start the downside correction. 

Ethereum and Ripple follow the leader

Ethereum price has gained over 60% since the start of the day and recovered over 50% of losses from the mod-March crash. On the upside, the local resistance is created by $210.00, while the support is seen around $206. The second-largest digital assed has spent in this range the most of the day. In the short run, a sustainable move above $220 is needed to improve the technical picture.

Ripple’s XRP has been less successful and gained just 13% from the start of the year. The third-largest coin hit the new April high at $0.2350, but failed to hold the ground and retreated to the area below $0.2200. A sustainable move above this area is needed for the upside to gain traction with the near-term bullish focus on $0.2350-$.2400 area. The support is created by 38.2% Fibo retracement for the downside move from February 2020 high on approach to $0.2000.