Cryptocurrencies are trading mostly steady on Monday after a brief rally over the weekend that left Bitcoin and Ethereum at key resistance levels. Bitcoin is trading in the US$41,000 area for the third consecutive day and Ethereum is trading below US$3,000. The cryptocurrency market in general is trading with slight ups and downs.
Bitcoin has been on an uptrend line since January 22, the line has been validated on numerous occasions, but has yet to be broken. Technical indicators are mixed and are more or less in a neutral position, indicating that range trading is predominant. The major altcoins have been moving in a similar pattern and are likely waiting for bitcoin to dictate the direction of the cryptocurrency market.
For now, the leading digital currency continues to maintain an up-and-down pattern, meaning upside momentum is still in play. On most time frames, technical indicators are neutral. The RSI and MACD technical indicators are near 50 and 0 respectively.
Investors don’t seem confident in the market, but selling pressure has eased, leaving room for a hold-oriented approach. Historically, buying during periods of extreme fear has generated positive returns and better profits than selling in the same market conditions.
As for Ethereum, it is trying to break its resistance level. In recent days, Ether has been trading sideways and within a triangle pattern on the daily chart. If it wants to form a bullish momentum, the price needs to break the trend line resistance.
The Russia-Ukraine war has certainly contributed to the highly bearish sentiment in the cryptocurrency market and the Fed’s rate hike announcement has added to the bearish sentiment: although investors were expecting worse news, hence the initial bullish acceptance, higher interest rates ended up worsening the overall market sentiment.