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Bitcoin Led the Crypto Market to Stabilize

Cryptocurrency market has stabilized after the sudden price rise of the top cryptocurrency Bitcoin.

The price of Bitcoin skyrocketed after a sharp sell-off in the cryptocurrency Tether (USDT) which is pegged by the US dollar on a 1:1 ratio. Tether fell by more than 7 percent which popped the Bitcoin price above $6,750 level. On crypto only and Tether-integrated exchanges like OKEx, Bitfinex, and Huobi Bitcoin price touched the level of $7,700. The 7 percent drop in price led the Tether to trade at $0.93 from $1. Because of the Tether’s decline, Bitcoin premium on crypto only exchanges rises by an identical margin. On fiat-to-crypto exchanges such as Coinbase, Kraken, and Bitstamp the price of Bitcoin peaked at $6,700.

The 2-hours candlestick chart of Bitcoin indicates that the price of Bitcoin even surpassed the level of $6,780 and tested the level of $6,800. But at these levels Bitcoin was rejected and it seems, there is a false break above the level of $6,660. Bitcoin shows a resistance at $6,660, every time when Bitcoin tries to cross this level it falls back near the major resistance zone which is $6,460. Bitcoin has also cleared a major bearish trend line with resistance at $6,360. As long as Bitcoin does not close at the resistance levels of $6,460 and $6,518, it is hard to consider that the recent bearish trend is reversed. Once Bitcoin closes above these levels it will be a clear bullish signal.

The price of Bitcoin has fallen around 4 percent from $6,700 to $6,450. A pullback was expected after the abrupt surge in the price of Bitcoin from $6,150 to $6,700 within several hours. In a two days period, the price of Bitcoin surged from $6,150 to $6,450 which was supported by a spike in daily trading volume. In the last 24-hours the trading volume of Bitcoin has increased from $2 billion to $5.6 billion. If we talk about the state of Bitcoin, it is more positive than last week.

According to the crypto analyst, DonAlt

“Closed at resistance. Might be getting a retrace today. I’m generally leaning bullish so I’m not shorting the way down, I’m waiting at support to re-long would love to get a daily close at the top of the green box.”

According to technical indicators, Bitcoin has to surpass the level of $6,550 and breakout at the resistance level of $6,800 to confirm the short-term rally.