The crypto market faced a massive resurgence on Friday with the total crypto market cap (TOTAL) flirting with the $3 trillion level. The TOTAL briefly reached $2.97 trillion as Bitcoin surged to $97,000. However, it has since dropped by $34.79 billion and currently sits at $2.94 trillion.
While this marks a decline, it is rather a market fluctuation and not a significant downturn. However, the TOTAL is still struggling to reclaim the $3 trillion level which would be crucial to push the positive momentum further.
The TOTAL currently faces strong resistance at the $2.97 trillion level. A breach of this level could push the total above $3.0 trillion and potentially towards the next resistance at $3.14 trillion.
However, if the total crypto market cap fails to hold the current level, it could face further reversal. The immediate support currently sits at $2.97 trillion. If this level is breached, the TOTAL could plunge towards the next support at $2.63 which would make a recovery towards $3 trillion even more difficult.
Bitcoin Drops to $95,000 Level, But is Relatively Stable
The price of Bitcoin has been flirting with the $98,000 level. Bitcoin recently surged above $97,000 reaching around $97.75K on May 2. However, BTC has since rebounded and is trading at $95,899 on the day as per the BTC/USDT daily chart on TradingView.
Following the plunge, Bitcoin is in a rather range-bound movement between $95,000 and $97,800. Failure to hold the current price level could result in a plunge with the support level lying at $93,437. If this level is breached BTC could face a deeper dip below $90,000.
On the other hand, if Bitcoin faces a breakout above the $97,533, it could make another attempt to surge to $100,000. But the coin faces a strong resistance around $97,533. A breach of this level is crucial to push BTC above the psychological $100K mark. This would boost investor confidence potentially pushing the coin to a new ATH backed by bulls.
Ethereum Slows Down but Continues to Hold $1,800
Besides Bitcoin, Ethereum has also slowed down mirroring the BTC price performance. The first altcoin by market has been on a bullish rally since April 22. But the momentum has slowed down with the ETH/USDT chart showing Ethereum is trading at $1,844.
Ethereum is facing resistance around $1,865. A breakout above this level is crucial to continue bullish momentum. This would push Ethereum above $2,000. In such a scenario, heightened confidence amongst investors would drive ETH towards the $2,100.
Failure to hold the current price level would however result in a plunge in the price of ETH. The 1,700 level serves as a strong support for the coin. A dip below this level would result in bearish momentum with a deeper plunge to the $1,574 more likely due to dampened investor confidence.
What to Expect in BTC and ETH This Week
Despite surging by over 14% on the monthly time frame, Bitcoin is still faced by low volumes. Not unless BTC’s trading volume surges above the current $15.92B, any breakout attempt could be short-lived. Bitcoin could thus continue in a sideways movement between $95,000 and $98,000 until the coin manages to establish a clear breakout.
On the other hand, Ethereum has been quite flat with less than 1% surge recorded over the last one month. Positive momentum is thus crucial to push the coin past the current resistance level.
Furthermore, the top altcoin has started off May well with a two day streak of ETH spot ETF inflows on May 1 and May 2 as per SososValue data. Continued ETF inflows this week could spark a hike in investor confidence which could in turn fuel bullish momentum.
Nonetheless, investors must be cautious in their approach. Bitcoin and Ethereum are very volatile meaning external factors could result in price volatility across the market.
