Overall cryptocurrency market cap soars to over $2 trillion
BTCUSD finds support above $50,000
Ethereum eyes all-time highs above $4,000
Dogecoin retracement nears the end
Major cryptocurrencies led by Bitcoin and Ethereum are trading at their highest level since May. The rally to four-month highs comes at the back of a steep pullback in June, resulting in the major coins losing all the gains accrued in the year. Following the bounce back, the crypto market cap has powered through the $2 trillion level as the upward momentum continues to gather pace.
BTCUSD above $50,000
BTCUSD is spearheading the crypto bull run, having powered through the $50,000 psychological level. The flagship cryptocurrency is up by more than 20% over the past month. With bulls in control, the next step should be the $55,000 level, waiting to see if a rally to record highs of $64,000 is still on the cards.
On the flipside, BTCUSD remains well supported for further upside action above the $50,000 level. A sell-off followed by a close below the crucial level could trigger a pullback to the $46,800 level, the next substantial support level.
Bitcoin’s impressive run comes at the back of a string of positive rhetoric in recent weeks. Elon Musk reiterating Tesla could resume Bitcoin payments was one of the catalysts that filled a rally from lows of $30,000 level.
Bitcoin mining activities are increasingly coming back online following the massive crackdown in China in recent months. Capacity rebounds worldwide are once again helping fuel demand for digital currency, fuelling an uptick in price.
El Salvador making Bitcoin a legal tender on September 7 is another development that has helped fuel the buying spree on BTCUSD. The development has only gone to affirm the flagship cryptocurrency’s role in the mainstream financial system. With expectations high that it could spur further Bitcoin adoption, the price looks set to continue edging higher.
Ethereum bulls eye all-time highs
Ethereum has also been on an impressive run ever since it bottomed out from lows of $1695 in June. The second-largest cryptocurrency by market cap has outperformed Bitcoin, rallying by more than 40% over the past month. ETHUSD is currently closing in on its 52-week high.
A rally to four-month highs of $3,937 means ETHUSD is closer than ever to its 52-week highs of $4,384.
A rally followed by a close above the $4,000 level should open the door for bulls to push for the 52-week highs. On the flip side, it remains well supported above the $3,600 below, which a sell-off could result in the pair plunging lows of $3,000.
The renewed buying tone on ETHUSD comes on Facebook executive David Marcus hinting that the social networking app could provide support for non-fungible tokens on its digital wallet. Most NFTs are built on top of the Ethereum blockchain, which explains why ETHUSD is attracting lots of buying pressure in the market.
Facebook’s help to make NFTs popular should go a long way in fuelling demand for ETH, which is used to pay for computations on the Ethereum network. Consequently, ETHUSD’s price should continue to edge higher amid the heightened Ether demand.
Dogecoin bounce back
On the other hand, Dogecoin is trying to bounce back after underperforming the market in recent days. DOGEUSD has struggled to edge higher even on BTCUSD and ETHUSD, powering to four-month highs. However, the meme cryptocurrency appears to have found support above the $0.30 level from where it is trying to edge higher.
On the upside, strong resistance is seen near the $0.349 level that bulls will have to power through for DOGEUSD to rally to one-month highs. On the flip side, a sell-off followed by a close below $0.30 could accelerate a pullback to lows of $0.267
From a technical perspective, DOGEUSD is bullish after the recent pullback. The meme coin looks set to continue its bull rally as the retracement comes to an end.