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Bitcoin and Altcoins Turnaround: Has the Market Reached Bottom?
After a sharp bearish extension to the $53,500 level, the cryptocurrency witnesses a magical overnight return in Bitcoin of 4.18% in 8 hours. With $134 million in short positions liquidated in Bitcoin and Altcoins, the recovery sentiments are returning.
As the weekend approaches, the slide comes to a halt as the threat of immediate selling pressure from the $2.7 billion Mt. Gox settlement looms. Amid volatile market conditions, news such as the German government continuing to sell, a 7.5% fee tax on Nigerian traders on Kucoin, and rising liquidations add fuel to the fire.
Meanwhile, with the overnight revelation of significant demand at lower levels in Bitcoin, altcoins are skyrocketing. Despite losing $1 trillion in market value, the altcoin sector has jumped from $850 billion to $914 billion overnight.
As Ethereum and major altcoins pump, a wave of relief hints at a recovery next week. Will Bitcoin and altcoins’ bull run continue as the market looks to bottom?
Let’s learn more about the price charts of Bitcoin and other major altcoins in the cryptocurrency market.
Is the largest cryptocurrency, Bitcoin, hitting rock bottom?
With a series of bearish triple candles on the daily chart, the BTC Price drops to $56,000 levels. The ongoing correction represents 20% in the last 30 days, starting from the $71,000 level to a low of $56,500.
Leading to a new resistance trend line, BTC price sustains a long-tail candle as it bounces off $52,000 levels. With a 4.15% recovery in 8 hours, the cryptocurrency reveals massive demand at lower levels and reserve players are ready to buy the dip.
With this intention and $52.92 million of short positions liquidated in Bitcoin alone, the market is hinting at a bottom. Also, with the possibility of a morning star or a sideways move to $56,500, the upside trend line could see another breakout attempt.
Largest Altcoin Ethereum Reemerges Above $3,000
Breaking below the long-standing support trend line, the ETH Price rally ends higher low formation. Despite a dip to the $28.64 level, Ethereum re-emerges above the $3,000 level as Bitcoin bounces.
Currently, the largest altcoin is trading at $3,010 with an intraday gain of 0.99%. The rejection of the lower price teases a potential retest of the broken trend line with a jump to $3,250.
With solid support at $125, Solana is targeting $150
With a relatively minor correction during the market crash, the Price SOL retests the $125 support zone. However, the altcoin is struggling to re-emerge above $153 after breaking the support trend line on the daily chart.
While the rejection of the lower $125 price point restarts another growth cycle, the $153 level is the next potential target for this altcoin. With a market cap of $57.28 billion, Solana ranks as the fifth largest cryptocurrency and offers upside to $250 according to Fibonacci levels on the daily chart.
The fight for Ripple and Cardano continues
Despite a dip to $0.31 in Cardano and $0.38 in Ripple, altcoins are seeing an overnight recovery. Currently, ADA is trading at $0.355 and XRP at $0.433, with the distance to the $1 target increasing every week.
Top Performing Altcoin: Toncoin
With an intraday gain of 4.99%, Toncoin is quick to recover from the market crash and is up 7% in the last 24 hours. Forming a morning star pattern, the Price TON the trend anticipates a bounce above the broken trend line.
Currently trading at $7.58, Toncoin is targeting a jump to the $8.96 level next week based on trend-based Fibonacci levels. However, market conditions will be crucial in deciding the next upside phase.
Conclusion
As Bitcoin bounces, altcoins suck up sentiment and momentum in the largest cryptocurrency to skyrocket. On its way to weaken and break out of the correction week, any impending supply from the Mt. Gox settlement could send prices lower.
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