LIVE#write2earn Cryptocurrency MARKET OUTLOOK: #BITCOIN REBOUND AND #ALTCOIN RESURGENCE AWAIT
After experiencing two consecutive red days on Monday and Tuesday, there's anticipation in the cryptocurrency market for a potential rebound, both in Bitcoin and altcoins. The question arises: Could this rebound propel Bitcoin back to test its all-time high?
Following a momentary scare on Tuesday, when Bitcoin plummeted to $64,500, the leading cryptocurrency has managed to maintain its position and is now showing signs of potential recovery to regain lost ground.
Bitcoin's Loss of Bullish Trend Line
On the daily time frame, it's evident that Bitcoin has broken its bullish trend line, which had been a significant support since early February. A daily close below this trend line on Wednesday, coupled with price confirmation of the break, signals a concerning development.
However, there's a resurgence of bullish momentum in Bitcoin, indicated by the resetting of stochastic Relative Strength Index (RSI) across lower time frames. Additionally, the daily stochastic RSI is on the brink of resetting before potentially turning upwards again.
Bitcoin's immediate challenge is to re-enter the triangle formed by the bullish trend line and the series of lower highs since its all-time peak. Failure to surpass the lower high at around $72,000 could result in further price declines and lower levels for Bitcoin.
Potential Altcoin Rebound
For altcoins, there's optimism reflected in the Total 3 chart (market cap of all cryptocurrencies excluding Bitcoin and Ethereum). A formation of a higher low suggests a positive outlook, contingent upon the altcoin market cap surpassing resistance at $776 billion and nullifying its own lower high.
Decision Time for Bitcoin Dominance
Bitcoin Dominance serves as a crucial indicator to determine the fate of altcoins. A pivotal moment is approaching, as depicted in the chart. A breakout to the upside could see dominance surge to 55%, further suppressing altcoin performance.
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