“Painted” alts like Ethereum, XRP, Cardano have this to look forward to – fr

“Painted” alts like Ethereum, XRP, Cardano have this to look forward to – fr

The market has been quite turbulent in recent days, but the price depreciation on Wednesday managed to leave obvious scars. Bitcoin, the market leader in crypto, drove the crash and most of the rest, except a few, have taken the same route. Having a long-term horizon and adapting to circumstances in situations like these is key to preventing wallets from being destroyed.

With traders and others in the industry already recognizing the “correction phase”, the market has started to show signs of recovery. As expected, the head was once again taken by Bitcoin.

Commenting on the current market situation, Amsterdam-based technical analyst Michaël van de Poppe recently asserted that markets will not return to their old lows. He said,

“Since the structure of the market hasn’t changed at all, what’s probably going to happen in the next few weeks is we’ll just get it back. “

Can Bitcoin Bounce Back?

Even though the last price correction was much deeper than analysts expected, by zooming out it is evident that Bitcoin is still in a bullish cycle. After witnessing a five-day drop of more than 47% in March of last year, the coin did not stumble to break its own lows on the charts.

The end of a corrective movement is characterized by a gigantic fuse on the cards. Usually side action is expected in the area where the weekly closes. Analyzing the same for Bitcoin using the chart above, the analyst added,

“The week looks pretty interesting at this point. We have a giant wick and we’re probably going to have some background build here.

He further pointed out that the coming week looks quite “interesting” for longs, with the analyst claiming that the levels of $ 43,000, $ 46,000, $ 49,000 and $ 54,000 were key resistance levels for the long. largest crypto in the world.

“These are the levels that we have to get through, and given that we’ve had such a big crash, it doesn’t seem likely that we’re going to be out of the blue here inside the pulse wave. The volatility should drop significantly, which most likely results in a range structure. “

What awaits the alts in the market?

Most altcoins have also suffered a massive drop in the past two days. According to Van de Poppe, “All altcoins have suffered pain at this point.” Nevertheless, there is something to look forward to. The analyst believes,

“If Bitcoin progresses further, we will soon have altcoins.”

As the analyst associated with Rekt Capital pointed out, when Bitcoin crashed in March 2020, it recovered by more than 39% after its trough. After its latest crash, it is quite evident that Bitcoin has followed the same pattern, having already recovered over 39% – a good sign for market alts.

Source: TradingView

Additionally, at the time of going to press, most major alts were positively correlated with Bitcoin. [Ethereum (+0.92), Litecoin (+0.89), XRP (+0.86), and Cardano (+0.82)]. It further implied that they were in the same boat and were heading together in the same direction.

After months of declining dominance, Bitcoin has gradually started to gain momentum over the past few days. Ergo, it goes without saying that the current recovery would depend mainly on the progress of Bitcoin.

However, as mentioned earlier, a dead cat rebound is possible before Bitcoin gets even worse and the price of crypto can drop back to $ 35,000 before climbing up the scale. However, if the price manages to maintain a breakout of the $ 42,200 mark, the short-term bearish structure could be reversed.

Subscribe to our Bulletin


Please enter your comment!
Please enter your name here