Cryptocurrencies have been little changed for on Monday waiting in black, as investors and traders search for a catalyst to push markets in one direction or another.
The prospect remains for increased seller activity towards mid-week although price decline, if there is any, should remain modest due to the strong support slightly under current levels.
As of press time, Bitcoin (BTC) is changing virtual hands at US $36,300, Ether (ETH) at US $2,812, ripple (XRP) at US $0.96, Binance Coin (BNB) US $398, cardano (ADA) at US $1.72, Dogecoin (DOGE) at US $0.37, ChainLink (Link) at US $28.29, UniSwap (UNI) at US $27.09, Polkadot (DOT) at US $24.80 and Stellar (XML) at US $0.38.
Bitcoin (BTC) has been stuck in the the tight US $30k-$40k range for the past weeks and appears to be losing momentum as multiple attempts to break and hold US $40,000 have failed. The US $40k mark is a major psychological resistance level with sellers holding huge amounts to dump lined up just above. Should Bitcoin reach and sustain this level, bulls may get even more encouraged. However, this looks unlikely in the short term. Despite rejected repeatedly at this level, the subsequent downtrend has not been that intense and it has managed to stick around the range-bound swings, which shows substantial buy orders below US $34,000.
On the flip side, there is well-tested support around US $32,000 and US34,000 levels, which should be sufficient to keep the coin aloft unless something unexpected happens.
Overall, cryptocurrencies have been struggling for direction over the past weeks after upward momentum ran out of steam due to huge selloff volumes above key resistance levels and a relative pickup in risk aversion.
At the moment, the cryptocurrency market is in a bit of a holding pattern waiting for the next catalyst and it is just a question of whether that catalyst is going to be a positive one or a negative one.