After a concerning dive yesterday, the crypto market is bouncing back. Bitcoin, Ethereum, and Cardano are showing strong gains in a matter of hours. Is this rebound a signal of a true reversal... or merely a trap for overly confident investors ?
Yesterday was a dark day for the crypto market. Bitcoin (BTC), but especially altcoins, suffered heavy losses following the publication of a disappointing inflation report in the United States. Although prices haven’t fully recovered yet, a significant rebound is already underway.
The total market capitalization of the crypto market fell by approximately 4% yesterday, marking the largest decline since May 23, nearly three months ago. Everything began when the Producer Price Index (PPI), which measures product price changes, came in significantly higher than expected. Minutes later, prices plummeted dramatically.
Bitcoin dropped from $121,000 to $119,000, before reaching a low of $117,250 in the evening. Ethereum (ETH) also fell, from $4,720 to $4,450. However, overnight, investors returned to the market in droves, bringing the two largest cryptocurrencies back to substantially higher levels. Bitcoin is currently trading at $119,000 and Ethereum at $4,645.
Other cryptocurrencies like Cardano (ADA) followed a similar trajectory and recovered some of their losses. ADA is now trading just $0.02 below its pre-inflation report price, at $0.95.
It’s now crucial to closely monitor Bitcoin’s movements. Is this the beginning of a larger rebound? If so, altcoins should logically recoup their losses. But if Bitcoin seeks to establish new lows, it will be very difficult for other cryptocurrencies to maintain their positions.
Dutch analyst Michaël van de Poppe predicts some short-term pain ahead. He believes Bitcoin could climb back to $120,000, before seeking lower levels again, which he estimates at $116,800 and $114,750.
“Sharp decline in the markets for Altcoins, and Bitcoin is back in the range. In the short term, the trend is bearish for me. However, if we break resistance around $120,500, that would be a sign that we’re going to make new highs.”
Passionate about the crypto world, he explores the blockchain ecosystem to extract the most essential insights. With his expertise in SEO and web writing, he transforms news and technical analysis into clear, engaging, and impactful content. His goal? To help investors better understand the opportunities and challenges of the crypto market.
DISCLAIMER
This article is for informational purposes only and should not be considered as investment advice. Trading cryptocurrencies involves risks, and it is important not to invest more than you can afford to lose.
InvestX is not responsible for the quality of the products or services presented on this page and cannot be held liable, directly or indirectly, for any damage or loss caused by the use of any product or service featured in this article. Investments in crypto assets are inherently risky; readers should conduct their own research before taking any action and invest only within their financial means. This article does not constitute investment advice.
Risk Warning : Trading financial instruments and/or cryptocurrencies carries a high level of risk, including the possibility of losing all or part of your investment. It may not be suitable for all investors. Cryptocurrency prices are highly volatile and can be influenced by external factors such as financial, regulatory, or political events. Margin trading increases financial risks.
CFDs (Contracts for Difference) are complex instruments with a high risk of rapid capital loss due to leverage. Between 74% and 89% of retail investor accounts lose money when trading CFDs. You should assess whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Before engaging in financial or cryptocurrency trading, you must be fully informed about the associated risks and fees, carefully evaluate your investment objectives, level of experience, and risk tolerance, and seek professional advice if needed. InvestX.fr and the InvestX application may provide general market commentary, which does not constitute investment advice and should not be interpreted as such. Please consult an independent financial advisor for any investment-related questions. InvestX.fr disclaims any liability for errors, misinvestments, inaccuracies, or omissions and does not guarantee the accuracy or completeness of the information, texts, graphics, links, or other materials provided.
Some of the partners featured on this site may not be regulated in your country. It is your responsibility to verify the compliance of these services with local regulations before using them.
