Monday, Bitcoin cleared its major moving average while Ethereum, the second-largest cap currency, tested its new support level at $2900.
For the moment, this shows the crypto space can hold its weekend progress.
Often, the weekend can be pivotal for cryptocurrencies since they are given more attention when the stock market is closed.
That being said, last week we covered companies within the Crypto space that would benefit from If price action held in the large cap coins.
Next, we can focus on altcoins and the continuation of this trend based on new support in the large-cap currencies.
Starting with Bitcoin (BTC), now that it’s over its 200-Day moving average at roughly 45k it will need to hold this price level as a new support level.
Since the 200-DMA is a popular MA it will only boost investors sentiment if this level can hold.
Additionally, if BTC has a second daily close over the MA, it will confirm an accumulation phase.
On the other hand, Ethereum (ETH) is sitting in a bullish phase with its price trading over the 50-DMA and the 50-DMA over its 200-DMA.
With that said, the rise in large-cap currencies is pushing similar price action in altcoins.
For example, two we have been watching are Cardano (ADA), and Polygon (MATIC).
Like ETH, both dipped below their 200-DMA before reversing trends.
When it comes to support and resistance levels MATIC will need to hold its 50-DMA at $1.02 as new support.
If it holds this area, we could see it make a run back for highs around the $2.50 price level.
Since ADA is arelady over its MA’s, it will need to create a new support level over current resistance at $1.49.
Although it has been testing that area for the past 3 trading days, it has yet to hold over the $1.49 price level.
After that, the next resistance range for ADA comes in at $1.83.
While these currencies are showing potential trade setups, crypto-traders should always remember to time their trades alongside the major currencies (BIT & ETH).
That means if BTC and ETH begin to have trouble with their current breakout price levels, be cautious as the rest of the space could run into the same type of price action and volatility.
Stock Market ETFs Trading Analysis and Summary:
S&P 500 (SPY) Holding highs with support 436.
Russell 2000 (IWM) Still needs to clear 225 resistance.
Dow (DIA) Needs to hold 351 as support with more at 347.
Nasdaq (QQQ) 366.65 minor support the 10-DMA
KRE (Regional Banks) Needs to clear the 50-DMA at 65.45 and hold.
SMH (Semiconductors) 263.86 support area.
IYT (Transportation) 253.50 resisance area.
IBB (Biotechnology) New Highs.
XRT (Retail) 97 resistnace.
The author may have a position in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author and do not represent the views or opinions of any other person or entity.