The mainstream media has always been a lagging source of news. Equity traders never listen to the noise that is spread across regular news outlets, but rather focus on strong technicals and their own research. While the crypto market DID in fact suffer a severe crash, today was a powerful green day. Many investors rushed to buy the dip, thus increasing the buying side which drives prices upwards. Let’s talk about the overall crypto market and see how cryptos up 20% in the past 24 hours. Did the market REALLY recover?
Bitcoin (BTC) recovered above 40K
Bitcoin witnessed a huge 50% drop in its prices, from 60K all the way to 30K. The latter was very brief and whales managed to catch this low price. In the past 24 hours, Bitcoin was up 10% with a current price of UDS 40,700.
From a technical standpoint, BTC is trying to further recover and announce an end to the downtrend. If prices continue to go higher above 42K, we might see a medium-term consolidation. On the other hand, a break of the 40K price would signal a consolidation between 35K and 40K in the medium-term.
Ethereum is still indecisive – Make it or Break it further?
Although Ether is up, it is so by only a mere 3%. Ether’s price tanked below USD 3,000 and is currently sitting around 2,700. Usually, price consolidations are a good thing, preparing it for better and healthy uptrends. We await to see any confirmation of a new trend. In figure 2, we can clearly see how Ether made a rebound on the important area of USD 2,550 price area, which is a strong support. Break it downwards again may signal that the downtrend did not end yet. But this is still a bit too far off, as buyers entered the arena.
Internet Computer (ICP) made a nice Comeback
This relatively new crypto suffered huge dumps when it first got introduced to the market. Despite its significant market cap, its long-time holders were seen looking for other opportunities and cashed out when the project became public. Interestingly, after the crash, it made a huge comeback in its prices, which rose in the past 24 hours by 30%. If prices manage to stay above USD 150, we may say that prices are moving upwards. On the other hand, prices might fall all the way back to the USD 112 price area to rebound, or to sink further.
Conclusion
In the past 24 hours, most cryptos managed to recover from the previous dump. This does not mean that average investors should go and throw all their money in but simply goes to show how the market dynamics operate. Being scared of market fluctuations and specifically when prices fall, is not a good sign for good investors. If you’re going to be glued to the screen every time markets adjust or crash, investing is not for you.
Good traders know how to position themselves, and are aware of the risks that involve each position they open. ALWAYS have a backup plan, and know when you will force yourself out of the market. In the crypto sphere, heavy price adjustments are common, so technical trading matters.
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Rudy Fares