Bitcoin News Today: Crypto Market Cap Drops 4% After US Legislation Boost

Bitcoin (BTC) has been in a consolidation phase, with bears preventing bulls from sustaining prices above $120,000. According to the Director of Global Macro, BTC is in the middle of its adoption curve, suggesting further growth potential. The passing of key legislation in the US House of Representatives has boosted sentiment in the cryptocurrency sector, pushing the total market capitalization to just under $4 trillion. However, the market cap has since cooled off to $3.85 trillion.

Ether (ETH) is leading the altcoins charge higher, signaling the start of an altseason. Traders should be prepared for frequent pullbacks during the up move and stick to sound money management principles. The charts of the top five cryptocurrencies, including BNB, XLM, LTC, and ETC, look strong.

Bitcoin's shallow pullback suggests that bulls are not in a hurry to book profits as they anticipate the uptrend to continue. The upsloping 20-day exponential moving average and the relative strength index (RSI) in the positive territory indicate an advantage to buyers. If the bulls thrust the price above $123,218, the BTC/USDT pair could resume its uptrend, potentially surging to $135,729 and thereafter to the pattern target of $150,000. However, time is running out for the bears, who will have to swiftly tug the price below the $110,530 support to get back into the game. This may tempt short-term traders to book profits, pulling the price to $100,000.

The price has slipped below the 50-simple moving average, indicating that the bulls are losing their grip. The pair could drop to $115,000, which is an essential level for the bulls to defend. If they fail to do that, the pair may challenge the zone between the neckline of the inverse head-and-shoulders pattern and the $110,530 support. If the price turns up from the support zone, the bulls will again attempt to kick the pair above $123,218. If they manage to do that, the pair could rally to $130,000 and then to $135,729.

BNB (BNB) picked up momentum after breaking and closing above the $698 resistance. The BNB/USDT pair pierced the $732 resistance and reached the $761 level, where the bears are mounting a solid defense. If buyers do not allow the price to dip below $732, it suggests a positive sentiment, enhancing the prospects of a break above $761. The pair could then soar to $794. Conversely, if the price continues lower and breaks below $732, it signals the possibility of a range formation, with the pair swinging between $698 and $761 for some time.

Both moving averages are sloping up, and the RSI is in the overbought zone on the 4-hour chart, indicating that bulls are in control. The pair turned down from $765, but a positive sign is that the bulls have not allowed the price to plummet below $732. Buyers will make one more attempt to catapult the pair to $794. The first sign of weakness will be a close below the $732 level, and the selling could pick up if the pair tumbles below the 20-EMA.

Stellar (XLM) rallied sharply in the past few days and has reached the overhead resistance at $0.51. The rally has pushed the RSI into the overbought territory, signaling a possible consolidation or correction in the near term. If buyers do not allow the price to dip below $0.43, the XLM/USDT pair could break out above $0.51. If that happens, the pair may start the next leg of the uptrend to $0.64 and later to the target objective of $0.80. This positive view will be invalidated in the near term if the price turns down and closes below $0.43. The pair may then slide to the 20-day EMA.

The RSI on the 4-hour chart is showing early signs of forming a bearish divergence, suggesting weakening momentum. If the 20-EMA gives way, the pair could drop to the 50-SMA. This is a significant level to keep an eye on because a break below the 50-SMA may sink the pair to the 50% Fibonacci retracement level of $0.37. Alternatively, a solid bounce off the 20-EMA signals buying on dips, improving the possibility of a break above the $0.51 resistance. The pair may then resume the uptrend to $0.59.

Litecoin (LTC) broke above the $107 resistance but could not sustain the higher levels. The bulls are unlikely to give up easily and will again try to drive and sustain the price above $107. If they can pull it off, the LTC/USDT pair could surge to $130 and then to $140. Sellers are likely to have other plans and will try to retain the price below $107. If they manage to do that, the pair could slump to the 20-day EMA. A deeper pullback could delay the resumption of the up move.

The bears have pulled the price below the $107 level, indicating solid selling at higher levels. The pair may dip to the 20-EMA, which is a vital support to watch out for. If the price rebounds off the 20-EMA with strength, the bulls will try to propel the pair above $112. If they do that, the pair could rally to $120 and later to $130. Conversely, a break below the 20-EMA indicates profit-booking by short-term buyers, which could sink the pair to the 50-SMA.

Ethereum Classic (ETC) skyrocketed above the $21.70 resistance, indicating that bulls are on a comeback. The sharp rally has pushed the RSI into the overbought territory, suggesting a minor consolidation or correction in the near term. The ETC/USDT pair may retest the breakout level of $21.70. If the price rebounds off the $21.70 level with strength, it indicates that buyers have flipped the level into support, increasing the likelihood of a rally to $27. On the contrary, a drop below $21.70 suggests the markets have rejected the breakout. The pair may then plummet to the 20-day EMA.

The rally is facing profit-booking at $24.99, which has pulled the price to the 38.2% Fibonacci retracement level of $22.92. If the price rebounds off the current level, the bulls will attempt to resume the uptrend. If they succeed, the pair may climb to $27. On the other hand, a break and close below $22.92 could sink the pair to the critical support at $21.70. Buyers will have to fiercely defend the $21.70 level to keep the bullish momentum intact. If they fail in their endeavor, the pair may plunge to $19.56, completing a 100% retracement of the most recent leg of the rally.