Market Analysis: Bitcoin (BTC) Steady Near $3,420, Most Major Cryptocurrencies in the Red Today

February 5, 2019 / by Zachary Mashiach

As has been the trend over the last few days, Bitcoin (BTC) is stuck in a narrow trading range, and a slight cryptocurrency rally one day is followed by an equal price drop the next.

Today, major cryptocurrencies are, for the most part, in the red with Ethereum (ETH) down one percent, EOS down 0.5 percent, Bitcoin Cash (BCH) down 1.4 percent, Tron (TRX) down 2.4 percent, Stellar (XLM) down 3.7 percent, Bitcoin SV (BSV) down 2.9 percent, Cardano (ADA) down 0.4 percent, Dogecoin (DOGE) down 0.2 percent, and IOTA (MIOTA) down 3.8 percent.

Not all cryptocurrencies are down today, however. Monero (XMR) is up 0.6 percent, and Dash (DASH) is up 1.3 percent. These are both anonymity-oriented coins and perhaps have slightly different market dynamics than the rest of the major cryptocurrencies.

Litecoin (LTC) is unchanged on the day, following a 12 percent rally over the past week.

The total cryptocurrency market cap declined from $114 billion to $113.5 billion through the day. The total cryptocurrency market cap has been quite stable around this level over the past week, with a range of $116 billion to $112 billion.

Likewise, Bitcoin (BTC) has been in a narrow trading range between $3,370 and $3,490 since the beginning of February but for the most part has been between $3,400 and $3,450.

This is bad news for traders, who thrive on volatility, but it’s good news for those who use Bitcoin (BTC) as a currency and who thrive on stability.

The resistance level for Bitcoin (BTC) continues to be at $3,500-$3,600, which was the price of Bitcoin following the January CME Bitcoin futures expiration. It has been observed that the price of Bitcoin (BTC) after the CME expiration is generally a resistance or support level. This month it seems CME Bitcoin futures traders have gone short, making the expiration price a resistance level.

There seems to be continuing support around $3,400, with price excursions below that level quickly losing momentum. There is another longer term support level at $3,100, which is near the bear market low reached in mid-December.

A re-testing of cryptocurrency bear market lows is still possible, especially since rallies over the past month have all quickly lost momentum, showing that the overall market mood is still bearish.


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