Bitcoin Consolidates Around $7,500
A few bullish indicators are starting to show.
Bitcoin continues to consolidate around the $7,500 level in early Monday trading, as traders and investors await the launch of Bakkt’s Bitcoin options trading offering.
The broader cryptocurrency market is trading sideways as the top 10 cryptocurrencies struggled to find a strong directional bias in early-week trading.
Tezos continues its recent move to the upside, as the cryptocurrency posted a five percent gain. Cosmos started to stabilize after receiving a notable bid over the weekend.
The total cryptocurrency market capitalization is $197 billion, which is around $1 billion higher than the December monthly open.
Bitcoin is trading around the top of the falling wedge pattern, although upside momentum is currently lacking to forge a breakout.
Buyers need to move price above the $7,570 level to encourage further technical buying. Price is also starting to create higher highs and lower lows in the short-term, which is a bullish development.
The $7,770 and $7,850 level remain the key resistance areas bulls need to break in order to secure a test of the $8,000 level. Key support is found at the $7,380 and $7,200 levels.
Total Market Cap
Positive technical signs are starting to emerge on the daily chart of the total market cap chart. Although similar to Bitcoin, upside momentum is currently lacking.
A bullish breakout from a falling wedge pattern has occurred over the last few days. If the price continues to hold above trendline support, further gains across the cryptocurrency market should be expected.
Major upcoming resistance is located at the $218 and $230 billion levels, while key support is found at the $194 billion and $190 billion levels.
According to the latest data from The TIE, sentiment toward the cryptocurrency market remains is neutral, at 49 percent.
Ethereum has the strongest sentiment among the top 10 cryptocurrencies at 78 percent. Meanwhile, EOS has the weakest at 43 percent.