BTC and ETH at their support levels | What does this mean for altcoins?

#

The second quarter of 2021 in the cryptocurrency market was a crazy ride. While the crypto values soared to new highs in Q2, quarterly earnings were dismal. At the end of Q1, the Crypto market capitalization remained at $1.978 trillion, while prices continued to rise, bringing the total value over the $2.4 trillion barriers. However, as of June 30, the market capitalization remained at $1.447 trillion, with a decrease of 26.85% in the second quarter.

In this article, let’s understand the price aspects of Bitcoin and Ethereum along with the impact these top cryptos have on the altcoin market.

Bitcoin (BTC)

Bitcoin’s price resumed its upward trend last week, breaking over the $34k barrier. After establishing a foundation, Bitcoin’s price maintained a steady rise. Although it exceeded the $35k mark, bears defended the next resistance zone. It has retraced its gains below $35k and is now trading around $34k. If there are further losses, the bulls may attempt to defend the $33,500 level. The primary weekly support level is currently around $32,200.

It is correcting downward at the moment, but bulls may stay aggressive over $33,500. Bitcoin’s exchange rate, BTC to USD, increased by 1.53% in the week ending July 4. This crypto finished the week at $35,276 after partially recovering a 2.55% loss the previous week. After a rocky start to the week, Bitcoin surged to an intra-week high of $36,600 on Tuesday before reversing course. The first point of resistance is located around the $35k level. The key weekly resistance level is currently developing around $36k and if broken, the price may touch the $38k mark.

Ethereum (ETH)

The price of Ethereum increased in momentum after breaching the $2,250 mark. ETH broke over the $2,300 barrier and even surged above $2,350 before retracing its positions. It is now stabilizing at around $2,250, with significant support right near $2,200.

Ethereum crypto gained 17.04% in the week ended July 4. Ethereum finished the week at $2,323.15, reversing an 11.51% decline from the previous week. This crypto had a rocky start to the week, falling to an intra-week low of $1,957.24 on Monday before making a rise.

Six consecutive days in the green, highlighted by a 5.10% rise on Wednesday, concluded the week’s gains. If a further rise occurs, the price may encounter resistance around $2,320. The next significant resistance area is between $2,380 and $2,400.

One bright spot for Ethereum is the forthcoming EIP 1559 upgrade, which is expected to take place later this month. As is the case with the majority of big news events, Ethereum is expected to surge in the run-up to the event before collapsing to new lows afterwards.

How are top altcoins reacting to this?

Cardano (ADA)

Cardano token’s charts indicated a steady upward trend since the last week of June, but the currency was trading in the red at $1.44 at press time. The altcoin gained 15.9% in the past week and 5.0% in the last 24 hours. If the same pace is maintained, it may test the $1.63 barrier level in the following sessions.

The coin saw a significant increase in capital flows, resulting in consumers rushing to get more ADAs.

Binance Coin (BNB)

Binance coin is now hovering near the $300 mark. BNB may gather momentum if it rises over the $300 and $310 levels. In this scenario, the price may increase as high as $350. Otherwise, there is a chance of a decline to the $265 level.

Dogecoin (DOGE)

Dogecoin narrowly breached the $0.25 price level two days ago as a result of Elon Musk’s comments. But, at the time of writing, the currency was still trading at $0.25 and is still trying to break through the $0.250 and $0.265 resistance levels.

The currency had steadied and was trading between $0.23 and $0.28. The alt recorded modest increases of 2.2% during the last day. If the price continues to climb over $0.265, it may challenge the $0.3 level. Contrary to this, there is a threat of a decline to the $0.2 level.

Ripple (XRP)

At the time of writing, XRP cryptocurrency was trading at $0.68, with a market value of $31.75 billion. Due to the alt’s downward trend, the immediate support level in the event of a further decline would be $0.54. In the event of an upward price movement, the currency may encounter resistance around the $0.80 price level since XRP touched this level at least twice in June.

The price of XRP surged over $0.7 but failed to maintain this level. It is consolidating gains over $0.65 at the moment. If the price closes over $0.700, it may surge to $0.800.

Litecoin (LTC)

There was another effort to break over the $150 barrier in the Litecoin token. However, the bulls were unable to consolidate their gains, and the price peaked at around $148. It is currently consolidating and may resume its climb. If the price breaks decisively over $150, it may rise higher in the short future. On the downside, the primary support level is around $125.

Due to the high market capitalization of Bitcoin and Ethereum, they might seem like good representatives of the overall market sentiment. Though this hypothesis could be true to an extent, this cannot entirely be true as almost all the currencies discussed have their own defining characteristics, and there could be different factors affecting each of them.

So it is better to study the ones that you want to invest in individually with your research while keeping an eye on BTC and ETH to get the general market sentiment.

You can trade all of your favourite cryptocurrencies instantly from our list of reputed & most reliable crypto exchanges.

 Do consider checking them out. All the best!

Investment Disclaimer

This article is purely for educational purposes, and this doesn’t include any investment advice. Readers are requested to do their own research before they consider investing.

#