Home Bitcoin News Bitcoin Price Jumps Above $6800 as Momentum Builds

Bitcoin Price Jumps Above $6800 as Momentum Builds

5 min read

The major coins have been trading in extremely narrow ranges in 24 hours, with very low trading volumes and volatility across the board. The total value of the market is stuck around $270 billion as the segment failed to retain bullish momentum despite the spikes higher in the past week. While most of the top coins are trading clearly above the June lows, given the dubious long-term outlook, bulls can’t really enjoy the summer lull.

As in the case of traditional financial markets, the US holiday week kick-started the real summer season in crypto-land too, but as liquidity is lower, should bullish or bearish momentum appear, things can get wild quickly.

With that in mind, traders should remain cautious with opening new positions as the coins are still mostly on short-term sell signals, and the long-term outlook is mixed, even as the largest coins are still within bullish secular patterns.

BTC/USD, 4-Hour Chart Analysis

Although Bitcoin drifted over the previously dominant declining trendline, the coin still failed to show meaningful bullish momentum, while also failing to top the $6750 level. The coin is now trading just above the $6500 support, still around 10% higher than the key long-term $5850 level that it tested in June.

We still expect the coin to test that level in the coming weeks, despite the recent bounce, and the short-term relative strength of the largest digital currency.  Further support is found at $6275, while resistance above $6750 is ahead at $7000 and at $7350.

Altcoins Unchanged but Selling Pressure Persists

Ethereum and the other major altcoins haven’t been showing signs of strength in the last couple of days, and with the downtrends intact in most cases, we maintain a bearish bias towards the majority of the top currencies.

ETH/USD, 4-Hour Chart Analysis

ETH is still struggling to recover above the $475 level in the quiet environment, and the coin is still below even the short-term trendline as it remained slightly weaker than BTC from a short-term perspective.

The $450 support could be in play yet again should the coins exit their narrow ranges, but further consolidation is also possible, as liquidity is still very low. We expect another move to $400 in the coming weeks with further support levels at $420 and $380, and resistance ahead at $500 and between $555 and $575.

LTC/USD, 4-Hour Chart Analysis

Looking at the weakest majors that have been leading the way lower during the recent steep selloff, we can conclude that the despite some strong oversold bounces, like in NEO and Monero, the bearish leadership is still in place.

Litecoin is among the weakest coins from a long-term perspective, trading well below the key $100 level,  very close to its June low. A break below the support zone between $73 and $75 in the case of LTC would be a negative short-term sign for the segment, and for now, traders and investors should remain defensive.

Featured image from Shutterstock

Disclaimer:  The analyst owns cryptocurrencies. He holds investment positions in the coins, but doesn’t engage in short-term or day-trading, nor does he hold short positions on any of the coins.

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