After gains were curtailed on Friday, there followed a weak Saturday, and a strong down day on Sunday. Monday, and crypto is still down, but is this the turning point now?
Bitcoin holding well
Bearish periods are always difficult to suffer for those new to the ebbs and flows of the crypto market. Bitcoin takes a 3% loss and it’s as though the sky has fallen on our heads.
However, as things stand, from the close of play on Friday until the current time on Monday morning, bitcoin has lost just 0.8%. A couple of nice wicks to the downside on the daily time frame show that these small dips have been bought up. Bitcoin currently sits on support at $37,400, and the market will now decide what comes next.
For bitcoin, as long as the price holds, that problematic area of $38,000 awaits. Friday saw bitcoin pierce through this resistance as far as $38,400, That said, it’s not going to be easy. For the positive side of things, two long wicks under the last two weekly candles testify to the price being pushed up against the resistance.
USDT dominance is still weak, meaning that more investors are holding bitcoin and altcoins than stablecoins. USDT.D has flipped the 6.4 to 6.44% level from support and into resistance, so this bodes well for the crypto market.
Bullish for altcoins
Source: Trading View
The total crypto market cap is at $1.386 trillion, and Total 3 market cap (all crypto excluding bitcoin and ethereum) has retested $407 billion, and is still nicely within a bull flag. Perhaps this is one of the most bullish reasons for the crypto bull market to continue?
Still waiting on Ethereum
Source: Trading View
Ethereum is currently retesting the top of its own bull flag. Holding this line is obviously crucial for $ETH, and will have an impact on the rest of the ethereum ecosystem to boot.
Looking at all these factors, it would seem that a bounce could be about to take place. However, the market always has that extra card up its sleeve, so it is incumbent on all traders to use proper risk management. Trade wisely.
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.
