In recent days, Bitcoin (BTC) found itself below the crucial $26,000 mark, facing an uphill battle to breach the formidable $30,000 resistance level. Prominent analyst Michael Van De Poppe tackled this downturn in a recent YouTube analysis, linking it to developments concerning ETFs. This sudden correction heightened market volatility, leaving both traders and investors asking, ‘Will crypto recover?’.
Bitcoin’s Chart Analysis
Delving into Bitcoin’s chart, Van De Poppe pointed out a significant hurdle at the 200-week Exponential Moving Average (EMA). The price movement of Bitcoin hints at a potential consolidation phase reminiscent of patterns observed during previous pre-bull market periods. The pivotal question that remains is the trajectory of Bitcoin’s price, with the possibility of a dip to $25,000 looming on the horizon.
Altcoins Display Resilience
Amidst Bitcoin’s challenges, Van De Poppe shines a spotlight on the resilience of altcoins against Bitcoin. Notably, these altcoins are exhibiting signs of strength. The suggestion here is that altcoins may follow historical patterns. They will often gain momentum around September or October, potentially steering clear of significant declines during these months.
Addressing Altcoin Concerns
Amid concerns of altcoins dropping by another 80%, Van De Poppe dismisses this notion. He asserted that the crypto market finds itself in the latter stages of its cycle. While he acknowledges the possibility of a mild recession, he draws parallels to 2015 and 2016, when similar concerns emerged but ultimately proved unfounded. He reassures the community that even in the event of a slight economic downturn, the overall outlook remains favourable.
Stellar (XLM) Surges 10%, Bitcoin (BTC) Holds at $26K: Market Overview
Crypto Bear Markets; Will Crypto Recover?
The cryptocurrency market has been marked by a notable recovery, with a surge of nearly $10 billion in just one day. During a period of substantial volatility for Bitcoin (BTC) last week, the cryptocurrency has once again settled around the familiar price level of approximately $26,000.
BTC’s Recent Journey
Bitcoin, the flagship cryptocurrency, had been trading in a sideways fashion at around $26,000 for a prolonged duration. However, last Tuesday, the market landscape shifted dramatically. Grayscale’s legal victory over the US Securities and Exchange Commission sent shockwaves throughout the crypto space.
Grayscale’s Influence and SEC’s Response
The potential transformation of Grayscale’s GBTC into a spot BTC ETF prompted Bitcoin to surge by over $2,000 in a matter of hours, marking a multi-week high above $28,000. As anticipation grew for the SEC’s reaction, the regulatory agency made an expected move by postponing decisions on all spot BTC ETF applications for another 45 days. This, combined with diminishing excitement over Grayscale’s victory, led to a substantial price retracement.
Bitcoin Performance – Best Crypto to Invest in 2023?
Bitcoin experienced a drop of nearly $3,000 within just two days, plummeting to an 11-week low of $25,350. Nonetheless, it demonstrated resilience by rebounding and stabilizing around $26,000, mirroring its position from seven days earlier. Bitcoin’s market capitalization currently stands at $505 billion, accompanied by a 48.4% dominance over altcoins.
Altcoins Shine: How to Short Crypto
While most altcoins have recorded modest gains over the past 24 hours, some notable exceptions stand out. Ethereum, Binance Coin, TONCOIN, Ripple, Solana, Tron, Cardano, Polkadot, Polygon, and Litecoin have all registered slight gains. Solana (SOL) emerges as the most significant gainer, with an impressive 2% jump.
Stellar’s Impressive Surge
In a contrasting move, Stellar’s XLM has witnessed a remarkable surge of approximately 10%, firmly establishing itself above the $0.12 mark. Further notable gains come from Rocket Pool and Synthetix, both of which have posted double-digit increases.
Total Crypto Market Cap
Following the recent surge, the total cryptocurrency market cap has shown resilience. While the question ‘Will crypto recover?’ remains a matter of time, the crypto market cap regained nearly $10 billion within a single day. Finally, it settled just above the $1.050 trillion mark on CMC.