After a relatively quiet weekend for the cryptocurrency markets, Bitcoin has now surged nearly 10% to regain much of the losses that were incurred last Friday. Today’s market surge has led the overall crypto market cap to $113 billion, up 13% from its recent low of $100 billion.
Bitcoin Breaks Above $3,500
At the time of writing, Bitcoin (BTC) is trading up 8.5% at its current price of $3,550 and is trading up nearly 11% from its recently established 2018 low of just under $3,200. Today’s market rise, albeit relatively small, has led Bitcoin’s price to a new 7-day high at approximately $3,600.
Although today’s rise is certainly a welcome change from the constant downwards pressure the markets have faced over the past several weeks, Stephen Innes, the head of Asia Pacific trading at Oanda, recently told MarketWatch that he still expects the markets to see further downside in the near-term.
“Looking at the hand that is dealt, we should expect crypto markets to trade lower until ultimately investors can justify and determine valuations. But even from a cross-asset play with global markets veering south the fact investors can’t pin an intrinsic value on BTC, in my view makes it even less appealing,” he explained.
As for traders who may be looking to enter new long-positions, Rob Sluymer, a technical strategist at Fundstrat Global Advisors, said that traders should watch the 200-week moving average as a potential stop-loss level.
“While it’s premature to conclude a longer-term low is developing it is noteworthy/encouraging to see BTC beginning to respond to its next support level. We would recommend traders now use the 200-week sma [simple moving average] near between $3,100 and $3,200 as a stop-loss level to manage long side risk,” he wrote.
Altcoins Rise, EOS Skyrockets Over 20%
Bitcoin’s upwards move has led the altcoin markets to jump, with EOS being today’s best performing cryptocurrency.
At the time of writing, EOS is trading up nearly 23% at its current price of $2.37. EOS is currently trading up nearly 35% from its recently established 2018 low of $1.78. Although EOS is trading up over a 7-day trading period, it is currently down nearly 50% from its one-month highs of $4.64.
EOS’s positive price performance today has allowed it to secure the number four spot by market capitalization ahead of Stellar (XLM) by nearly $100 million, and behind Ethereum by nearly $8 billion.
Ethereum (ETH) is currently trading up 10% at its current price of $94.96 and is currently trading up nearly 16% from its recently established 2018 low of $82.
XRP is closely tracking Bitcoin’s price action and is currently trading up 11% at its current price of $0.321. XRP appears to have established the $0.28 region as a level of support, although this support level will only hold if Bitcoin is able to maintain above $3,200 in the days and weeks to come.