Bitcoin extended declines yesterday, but buyers were able to hold losses below USD 7,250. BTC/USD formed a short-term bottom pattern with a strong bullish candle and recovered above USD 7,400. Similarly, all major altcoins including ethereum, ripple, bitcoin cash, litecoin and Neo corrected above key resistance levels. The current price action suggests that the market was well bid near weekly lows and prices could correct further higher during the following sessions.
Bitcoin
Bitcoin price is currently down 1.3% to USD 7,410 (GMT 8:00 AM) and is holding the USD 7,250 support. The last 4-hour chart was positive, suggesting a slight recovery above USD 7,600. However, the USD 7,600 - USD 7,700 zone is a crucial barrier for buyers. A successful close above the mentioned barrier could open the doors for a test of USD 8,000.
On the downside, price must hold the USD 7,250 support. If buyers fail to defend the stated USD 7,250, there may perhaps be a strong slide towards USD 6,900 in the near term.
Ethereum
Ethereum price bounced back sharply and moved above the USD 600 level. However, ETH/USD struggled near the USD 610 - USD 615 region, and is currently down to USD 595.
It seems like the price may move back above USD 600 during the coming sessions as long as it is above USD 575. Should there be a downside break below USD 575, the price may possibly decline further towards USD 550.
Bitcoin Cash and Ripple
Bitcoin cash is showing a positive signs above USD 980. BCH/USD is currently up 2.2% to USD 1,010 and is moving with a bullish angle. On the upside, an immediate resistance is at USD 1,040, followed by USD 1,080. Supports on the downside are at USD 980 and USD 960.
Ripple managed to crawl back above USD 0.60, which is a positive sign. However, buyers need to push the price above the USD 0.62 resistance to accelerate upsides.
Other Altcoins Market Today
Many small cap altcoins gained traction today. Coins like Bitcoin Private, CyberMiles, Kin, EOS and Mixin surged higher by more than 10% to move in the green zone.
Overall, if the recent bounce in bitcoin is real and the price settles above USD 7,500, there are real chances of BTC/USD gaining bullish momentum toward USD 8,000. On the flip side, a break below USD 7,250 will most likely accelerate declines.