The cryptocurrency market has started to recover gradually from a major pullback, which occurred following a substantial 40 percent increase in Bitcoin Cash (BCH) and a surge in the price of several other major cryptocurrencies.
Over the last 24 hours, the valuation of the cryptocurrency market has increased from $211 billion to $213 billion, by less than one percent. Some cryptocurrencies including Ripple (XRP) and Ethereum (ETH) have started to demonstrate momentum, both recording around a 2 percent rise in value on the day.
The volume of Bitcoin, which remained above the $4.5 billion mark earlier this week, has dropped to $3.8 billion, as the dominant cryptocurrency struggled to retain stability in the $6,500 region. On fiat-to-crypto exchanges like Coinbase and Bitstamp, the price of Bitcoin has fallen back to the $6,300 region.
Weak Momentum of Bitcoin
Throughout November 7 to 8, within that 48-hour period, Bitcoin showed strength in volume and momentum, initiating a rally to $6,550. But, at the time, technical analysts stated that BTC would have to comfortably breakout of the $6,600 resistance level and test the $6,800 resistance level to confirm a bullish short-term price action.
“Resistance levels I’m looking at are horizontal red lines. $6,600 / $6,650 next. Levels should be fairly obvious and have previously acted as resistance, the more, the more meaningful. No point in being too precise, small increments represent noise,” technical analyst Alex Kruger said on Wednesday.
Since then, BTC endured a pullback from $6,550 to $6,350, after recording significant sell volume on both Wednesday and Thursday.
According to cryptocurrency trader Don Alt, until the weekly candle of BTC closes,