Bitcoin Lacks Momentum While Ethereum Rallies
Bitcoin Stays Close To $40,000 As Bitcoin Dominance Falls
Bitcoin failed to settle above the resistance at $42,000 and declined towards the support at $40,000 while Bitcoin Dominance continued to trend down.
Bitcoin Dominance, which measures the market capitalization of Bitcoin as a percentage of total crypto market capitalization, faced resistance near 49% and declined towards 47% as traders moved more funds into altcoins.
Ethereum, the world’s second cryptocurrency by market capitalization, gained strong upside momentum and is trying to settle above the $2,600 level. XRP received strong support at the 50 EMA at $0.7130 and is testing the resistance at $0.77. Meanwhile, Dogecoin remains stuck near the key support level which is located at the 20 EMA at $0.2045.
Bitcoin faced strong resistance near $42,000 and declined towards the $40,000 level. The nearest support level for Bitcoin has emerged at $39,200. In case Bitcoin declines below this level, it will move towards the next support level at $38,000.
A successful test of the support at $38,000 will open the way to the test of the next support level which is located at the 20 EMA at $37,000. If Bitcoin declines below the 20 EMA, it will move towards the support at the 50 EMA at $36,500.
On the upside, Bitcoin needs to stay above the key $40,000 level to have a chance to gain upside momentum in the near term. RSI declined back into the moderate territory, and there is plenty of room to gain additional upside momentum in case the right catalysts emerge.
If Bitcoin settles back above $40,000, it will head towards the next resistance level at $41,300. A successful test of this level will open the way to the test of the resistance at $42,000.
In case Bitcoin manages to settle above the resistance at $42,000, it will head towards the resistance level at $44,000. A move above this level will push Bitcoin towards the next resistance which is located at $46,000.
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This article was originally posted on FX Empire