As Bitcoin recovers $50k, this can be seen as positive for a potential new bull cycle and might allow some altcoins to rise.
Matthew Hyland reveals a bearish reversal pattern in the altcoins sector but adds that there is a potential for an altcoin charge higher if the key support levels are maintained.
Although, in the recent past, Ethereum experienced fluctuation in the price, the given currency showed great capacity for the recovery
Bitcoin which has been the flagship digital currency also slipped to $49,577 but later moved up to the $50,000 mark. This price action has created new hope to the Bitcoin supporters with the possibility of starting a new phase of a bull run.
Not only did the movement of the market affect Bitcoin but also the numerous Altcoins related to it. Like in the case of Bitcoin, the rest of the cryptocurrency market experienced a decline in the value of market capitalization, which was down from $2. 42 trillion to $1. 691 trillion.
Investors were alarmed by this abrupt and sharp decline since it suggested a poor future.Just like the BTC, the total crypto market cap has since regained a portion of its lost value as it has become apparent that the market is quite robust.
Altcoin Market Shows Signs of Recovery
Matthew Hyland who is a market analyst in the cryptocurrency markets provided the audience with information pertaining to the Altcoin market. He achieved this with a special emphasis on the market capitalization of the Altcoins excluding the top ten cryptocurrencies. In the present chart, Hyland pointed out a technical setup that was formed as the market cap recovered above the neckline of a Head-and-Shoulders pattern. He drew attention to developing reversal candles at this crucial level, pointing to a possible turnaround.
https://twitter.com/MatthewHyland_/status/1820699873211011331
According to Hyland, this means that the altcoin market may be on the precipice of a sustained upturn. He stressed that this reversal signal is more valid provided the market cap is above the Head-and-Shoulders neckline. If this level were to be sustained it could open up an up trending market.
Ethereum's Sturdiness Despite Market Volatility
Another large-cap cryptocurrency that apparently did not suffer greatly during the recent market fluctuations is Ethereum. Ethereum had a slight fall to $2,116 and after that, once again moving upwards and was $2,456 at the time of writing. This recovery follows the generalized pattern of turnarounds that came into play throughout the main cryptocurrencies market.
The rebound in Bitcoin, Ethereum, and the broader cryptocurrency market suggests a possible shift in market dynamics. However, it's still unclear if this increase will definitively lead to a bull market.
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