The market after a week of plunging has today its revived bullish sentiment. In the last few days, the market plunge saw the total market cap fall from highs of $300B to the set support of $250B. This as the top coin, with over 60% of the dominance dropped from highs of $9,800 to $8,800. Altcoins shared the same fate as most dropped 10% to 20% mid-week.
Bitcoin Bottom Set, What Next?
During the market dip, the message from most analysts was one, buy the dip! Smart investors understood this. The first few weeks of the month and by extension January, had seen the market rally too fast and too hard. This had seen a number of altcoins double their value, Bitcoin during the time, gained more than 45%. The total market cap topped at around $310B. A retracement was inevitable.
— Crypto Michaël (@CryptoMichNL) February 27, 2020
The market needed to go back and set support before continuing its rally. At around $270B, and Bitcoin holding strong support above $9,500, this looked ideal but there was a possibility that it could set a bearish trend.
Wen Bitcoin breached the $9,500 support mid-week, this triggered a massive sell-off. Investors panicked and set off a chain reaction that saw the market wipe out billions and Bitcoin fall to $8,800.
Bitcoin has however enjoyed better support at this position and after getting back above its 200 EMA, it has recorded a nice bounce. At the time of writing this, it has climbed above $8,900 and looks set to get back above $9K.
Good: bounce from 200 EMA, potentially beautiful daily candle, nearly 50% retrace.
Bad: below descending resistance of blue channel, below 50 EMA and THE LINE at $9,090 is now resistance. pic.twitter.com/jgdsQnmuLi
— The Wolf Of All Streets (@scottmelker) February 27, 2020
Altseason Back On The Table
Altcoins are also looking positive led by the two biggest altcoins. Ethereum and XRP are up by 5% and 6% respectively. They are leading the way back up. Investors will hope this marks the return of the altseason. To validate their bullish approach is the now dropping Bitcoin dominance. Back to 63% at the time of press.
After shaking off the bears in the last couple of days, the bulls are now set to push the market higher. In the next couple of weeks, most coins will be retesting recent highs. For Bitcoin, the $10K psychological position will be key to reviving the full-blown FOMO bullish momentum.
The views, opinions, positions or strategies expressed by the authors and those providing comments are theirs alone, and do not necessarily reflect the views, opinions, positions or strategies of CoinGape. Do your market research before investing in cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.