Altcoins

Bitcoin and Altcoins Reversal: Has the Market Bottomed?

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After a strong bearish extension to the $53,500 level, the cryptocurrency is seeing a magical 4.18% 8-hour return on Bitcoin. With $134 million in short positions liquidated on Bitcoin and Altcoins, the recovery sentiment is cooling down.

Heading into the weekend, the slide is halting as the threat of immediate selling pressure from Mt. Gox’s $2.7 billion payout looms. Amid volatile market conditions, news such as the German government continuing to sell, the 7.5% fee tax on Nigerian traders on Kucoin, and increasing liquidations are adding fuel to the fire.

Meanwhile, with the overnight revelation of significant demand at lower levels in Bitcoin, altcoins are surging. Despite losing $1 trillion in market cap, the altcoin sector grew from $850 billion to $914 billion overnight.

As Ethereum and major altcoins surged, a fresh breath of relief suggests a recovery next week. Will Bitcoin and altcoins continue their rally as the market appears to be bottoming out?

Let’s find out more about the price charts of Bitcoin and other major altcoins in the cryptocurrency market.

Is the largest cryptocurrency, Bitcoin, hitting bottom?

With a series of bearish triple candles on the daily chart, BTC price is dropping to $56,000. The ongoing correction represents 20% over the last 30 days, starting from the $71,000 level to reach a low of $56,500.

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Leading to a new resistance trendline, BTC price holds a long-tail candle shape as it rebounds from $52,000 levels. With a 4.15% recovery in 8 hours, the crypto reveals massive demand at lower levels, and secondary players are ready to buy the dip.

With such intent and $52.92 million in liquidated short positions in Bitcoin alone, the market is hinting at a bottom. Moreover, with chances of a morning star or sideways move at $56,500, the upper trendline could witness another breakout attempt.

Largest altcoin Ethereum resurfaces above $3,000

By breaking the long-standing support trendline, ETH price rally ends the formation of higher lows. Despite a drop to $28.64, Ethereum resurfaces above the $3,000 mark as Bitcoin rebounds.

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Currently, the largest altcoin is trading at $3,010 with an intraday gain of 0.99%. The rejection from below suggests a potential retest of the broken trendline with a jump to $3,250.

With strong support at $125, Solana targets $150

With a relatively minor correction during the market crash, SOL price is retesting the $125 support zone. However, the altcoin is struggling to resurface above $153 after breaking the support trendline in the daily chart.

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As the price rejection below $125 kickstarts another bullish 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 an upside of $250 according to the Fibonacci levels in the daily chart.

The fight continues for Ripple and Cardano

Despite Cardano dropping to $0.31 and Ripple dropping to $0.38, 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.

The best performing altcoin: Toncoin

With an intraday gain of 4.99%, Toncoin is rebounding quickly from the market crash and is up 7% in the last 24 hours. Forming a morning star pattern, the TON price trend hints at a rebound above the broken trendline.

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Currently trading at $7.58, Toncoin is eyeing a surge towards the $8.96 mark next week, in line with the trend-based Fibonacci levels. However, market conditions will be crucial in deciding the next phase of the uptrend.

Conclusion

As Bitcoin rebounds, altcoins are siphoning sentiment and momentum from the largest cryptocurrency to surge higher. On track to undercut and surpass the correction week, any upcoming supply from Mt. Gox payout could push prices lower.

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