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After gains narrowed on Friday, a weak Saturday and a day of sharp declines followed on Sunday. Monday, and cryptocurrencies continue to decline, but is this the turning point now?
Bitcoin holding up well
Bearish periods are always difficult to endure for those who are new to the ebbs and flows of the cryptocurrency market. Bitcoin suffers a 3% loss and it's like the sky has fallen on us.
However, as things stand, from the close of play on Friday to the current time on Monday morning, bitcoin has lost just 0.8%. A couple of nice downward wicks on the daily time frame show that these small dips have been bought. bitcoin It currently has support at $37,400 and the market will now decide what comes next.
For bitcoin, as long as the price holds, that $38,000 problem area awaits. On Friday, Bitcoin broke through this resistance to $38,400. That said, it won't be easy. On the positive side of things, two long wicks below the last two weekly candles testify that the price is rising against the resistance.
USDT dominance remains weak, meaning there are more investors holding bitcoins and altcoins than stablecoins. USDT.D has changed the 6.4 to 6.44% level from the support to the resistance level, so this bodes well for the cryptocurrency market.
Bullish for altcoins
Source: Commercial view
The total cryptocurrency market cap is $1.386 trillion, and the market cap of Total 3 (all cryptocurrencies excluding bitcoin and ethereum) has retested $407 billion, and is still within a bull flag. Perhaps this is one of the most bullish reasons for the cryptocurrency bull market to continue?
I'm still waiting on Ethereum
Source: Commercial view
Ethereum is currently retesting the top of its own bull flag. Maintaining this line is obviously crucial for $ETH and will have an impact on the rest of the ethereum ecosystem start up.
Taking all of these factors into account, it would seem that a rebound could be on the verge of occurring. However, the market always has that extra card up its sleeve, so it is up to 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.
