The cryptocurrency markets saw a strong recovery on Tuesday following a 30% correction that pushed Bitcoin (BTC), Ethereum (ETH), Solana (SOL), and other major cryptocurrencies to multi-month lows. However, as stock markets recovered, so did the cryptocurrency market. Japan’s stock market index rose by almost 11% in a significant boost to stock and crypto markets.
Markets suffered one of their worst selloffs in recent memory, reeling due to rising tensions in the Middle East and fears of a US recession. After recovering, BTC is trading well above the $55,000 price level and is eying a move to $60,000. Major cryptocurrencies saw losses between 10% and 25%.
Crypto Markets Rebound
The cryptocurrency markets registered a strong recovery on Tuesday, with Bitcoin (BTC), which saw a substantial fall on Monday, jumping by almost 9% over 24 hours. Other major altcoins, including ETH and SOL, registered similar recoveries, as markets bounced back after a weekend of turmoil. BTC is currently trading just under the $57,000 mark and is up by 2.67% in the past 24 hours. ETH has also climbed above $2,500 after witnessing its most significant drop since 2021. The gains made on Tuesday represent only a small portion of the value lost in the collapse, which saw the crypto markets lose $400 billion.
Meanwhile, analysis of on-chain activity revealed that prominent Bitcoin addresses have scooped up nearly $23 billion worth of the asset over the past month, prompting CryptoQuant founder Ki Young Ju to state that something was happening behind the scenes.
“I’m pretty sure something is happening behind the scenes. 404,448 #Bitcoin have moved to permanent holder addresses over the past 30 days, and it’s clearly an accumulation. We’ll know within a year.”
Young predicted a spike in the 30-day demand change for permanent BTC holders. Within a year, TradFi institutions, companies, governments, and other entities will announce they have acquired BTC in Q3 2024, and retail investors will regret not buying the asset because of the Mt. Gox and German government selloff factors.
“And retail investors will regret not buying it because they were worried about the German govt selling, Mt. Gox.”
Sellers Exhausted
Meanwhile, BTC sellers ran out of steam as markets recovered. BTC had briefly dipped below $50,000, spooking traders, many of whom anticipated a bigger drop. However, the cryptocurrency recovered, posting an increase of $4,000 per BTC to climb towards $55,000. Popular trader Rekt Capital cited seller exhaustion when the price dipped below $50,000, stating,
“Finally, the sell-side volume has reached and even dramatically eclipsed Seller Exhaustion levels seen at previous price reversals to the upside. In fact, Bitcoin hasn’t seen this level of sell-side volume since the Halving in mid-April 2024.”
Bitcoin (BTC) Price Analysis
Bitcoin (BTC) is eying the $60,000 level as it recovers after a near 30% correction. BTC had slipped from near the $70,000 mark to below $50,000 as markets collapsed. As we can see in the price chart, bearish sentiment began intensifying on Friday as BTC dropped by 5.40% to go below the 50-day SMA and settle at $61,786. The world’s largest cryptocurrency continued to drop over the weekend, going below the 200-day SMA on Saturday and falling by 4.41% on Sunday to slip below $60,000 and settle at $58,301. With stock and crypto markets collapsing on Monday, BTC faced intense selling pressure as sellers yanked the price below $50,000.
Source: TradingView
As a result, BTC hit a day low of $49,351. However, demand increased at lower levels as traders began buying the dip, allowing BTC to push back above $50,000. BTC eventually settled at $54,274, a drop of almost 7% compared to Sunday. Despite the significant correction, BTC and other cryptocurrencies recovered on Tuesday and registered a 3.50% increase to push above $55,000 and settle at $56,172. The current session sees BTC up by 1.40% and trading just under the $57,000 mark. BTC faces immediate resistance around the $57,200 level.
If BTC can move above this level, it will suggest that bulls are serious about a recovery. A close above $57,000 will set BTC up to continue its recovery rally. Should bullish conditions persist, a move to $60,000 could become a realistic possibility. However, if BTC cannot push above its immediate resistance, it would signal continued weakness in the markets. In such a scenario, BTC could drop to $52,000. However, the price is expected to rebound from this level due to strong demand at lower levels.
Ethereum (ETH) Price Analysis
Ethereum (ETH) registered the biggest drop since 2021 as the bloodbath in the markets dragged the price to multi-month lows. While it has recovered over the past couple of sessions, price action remains subdued. ETH had been struggling to push above $3,500 since the Middle of June, as it faced stubborn resistance at this level. However, bearish sentiment intensified on Friday as ETH dropped by almost 7%, slipping below $3,000 and settling at $2,987. A further drop of 2.79% brought ETH down to $2,904, close to its support level of $2,850.
Source: TradingView
ETH’s 2,850 support level had been tested several times, and the price rebounded each time. However, ETH lost this level of support on Sunday after the price dropped by 7.41% to $2,688. Selling pressure intensified on Monday, as the selloff dragged ETH to a day low of $2,131, with fears the price could dip below $2,000. However, demand picked up at lower levels, allowing ETH to recover and settle at $2,421. Despite a recovery from lower levels, ETH still settled below $2,500 and recorded a staggering drop of almost 10%.
ETH recovered on Tuesday, along with the rest of the markets, rising to a high of $2,556. However, it fell back and settled at $2,464, an increase of 1.77%. The current session sees ETH continue to push higher, with the price just above $2,500 after an increase of 1.58%. If ETH can stay above $2,500, it faces resistance at the $2,800 level. If it cannot push above this level, it could drop back to $2,500. Failure to stay above $2,500 could see ETH fall back towards $2,200. However, If ETH can push above $2,800, we could see the price go above $3,000 and retest the $3,500 level.
Solana (SOL) Price Analysis
Solana (SOL) has continued its impressive recovery as the markets bounce back. The past 24 hours have seen SOL register an increase of over 8% as it eyes the $160 price level. If we look at the past 48 hours, SOL has registered a jump of almost 40% to move to its current price. As we can see in the price chart, SOL had primarily been in the red after reaching a high of $194 on July 29. While it was on a downward trajectory since selling pressure registered a significant increase on Friday after SOL tanked by almost 9% to $152.66.
Source: TradingView
SOL continued to drop over the weekend, going below the 50 and 200-day SMAs on Saturday after a 6.62% decline. This saw the price slip below $150 and settle at $139.62. A further drop of 3% on Sunday saw SOL end the weekend at $138. Selling pressure intensified on Monday, pushing SOL to a low of $109.99. However, demand picked up at lower levels, allowing SOL to climb back above $120 and settle at $129.87, a drop of 6.08% compared to Sunday. Markets recovered on Tuesday, and so did SOL, registering a substantial increase of 11.33% to settle at $144.
The current session sees SOL up by 5.51% as buyers attempt to consolidate above $150. SOL’s next goal is to push above $160. If it can close above this level, bulls will attempt a push to the $170 level. For SOL to sustain its recovery, it is crucial bulls keep the price above $150. However, should SOL drop back below $150, it could drop to its immediate support level of $130. A decline below this level could cause the price to drop to $110.
Dogecoin (DOGE) Price Analysis
Dogecoin (DOGE) slipped below the $0.100 level during the market meltdown on Monday. However, with meme coins bouncing back, DOGE will look to reclaim the level and push towards the 50-day SMA. DOGE had registered a significant slump over the weekend, dropping by 6.52% on Friday and settling at $0.111. The price continued to drop over the weekend as DOGE registered a 3.31% drop on Saturday and a 3.70% drop on Sunday to settle at $0.104. As markets crashed, DOGE dropped to a low of $0.080.
Source: TradingView
DOGE rallied from this level to close at $0.094, which was still a substantial drop of 9.13% compared to Sunday. The price continued to push higher on Tuesday, reaching a high of $0.101. However, sellers pushed back from this level, pushing DOGE down to $0.096. The current session sees DOGE up by almost 3% and trading at $0.098. To sustain this recovery, buyers must push DOGE above $0.100. A close above this level will allow DOGE to push back towards its pre-weekend level of $0.111. The signs are promising for the world’s leading meme coin, with spot trading volumes increasing and open interest also witnessing a jump.
Bitcoin Cash (BCH) Price Analysis
Bitcoin Cash (BCH) has seen a strong rebound as markets recover. The cryptocurrency has recorded significant inflows, indicating a bullish trend ahead and signs of stability. According to data from Coinglass, BCH derivatives have recorded a significant shift partly responsible for its rebound, besides other market factors. While there has been a decrease in trading volume, open interest has registered a notable increase. Now, let’s look at the BCH price chart.
Source: TradingView
As we can see in the chart above, BCH dropped by almost 8% on Friday, losing the crucial $400 support level and closing at $381.63. This drop also saw the price slip below the 200 and 20-day SMAs. BCH continued to drop over the weekend, going below the 50-day SMA on Saturday and ending the day at $364. Sunday saw BCH drop by almost 9% as the price fell to $332.40. Selling pressure intensified on Monday, pushing BCH to a day low of $274. However, demand at lower levels allowed BCH to climb back above $300 and settle at $310.22.
The price continued to push higher on Tuesday, reaching a day high of $330. However, BCH could not stay above this level and fell back to $315, an increase of 1.65%. The current session sees BCH up by almost 2% and trading at $321. If BCH can sustain its upward momentum, it could surpass the $350 price level and look to retest the $400 price level. The RSI is under 50 but has rebounded from the oversold zone, indicating some buying interest.
Uniswap (UNI) Price Analysis
Uniswap (UNI) has reported a 9% increase over the past 24 hours as it makes a strong recovery with the rest of the markets. The altcoin, which had been trading in a downward trend since mid-June, saw bearish sentiment intensify last week. Friday saw a significant drop of over 8%, leading to UNI losing the $7 level and settling at $6.60. After registering a marginal increase on Saturday, UNI was back in the red on Sunday, dropping by almost 7% to $6.17. UNI continued to drop on Monday, dropping to a low of $4.71. However, it recovered from this level, climbing back above $5 and settling at $5.37. Despite this recovery, UNI ended Monday down by almost 13%.
Source: TradingView
Prices recovered on Tuesday and UNI posted an increase of almost 8% to settle at $5.77. The current session sees buyers retain control, with the price up by nearly 3%. As we can see from the price chart, the RSI had dipped into the oversold region, indicating a recovery was on the cards. To sustain this recovery, buyers need to reclaim $6. A close above this level could open the doors for a potential move above $7.
Maker (MKR) Price Analysis
Maker (MKR) has dropped by almost 35% over the past week, losing crucial support levels. MKR had been trading between $3,000 and $2,700 before Friday. As selling pressure intensified on Friday, MKR dropped over 11%, slipping below $2,500 and settling at $2,432. MKR continued to drop over the weekend by 4.77% and 6.28% on Saturday and Sunday, respectively, to settle at $2,170. The price dipped below $2,000 on Monday as MKR fell by over 12% to $1,904.
Source: TradingView
Buyers attempted a recovery on Tuesday as MKR reached a day high of $2,029. However, with sellers active at this level, the price fell back, dropping by 2.16% to $1,862. The current session sees MKR up by just over 2% as buyers look to push above $2,000. As we can see in the price chart, the RSI is currently in the oversold zone, indicating a recovery in the short term. In the short term, MKR must reclaim the $2,000 level. A close above this level could allow it to push back towards its pre-weekend levels.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
