Despite a cautious market sentiment, the crypto market is experiencing a remarkable resurgence. What signals suggest that this recovery could continue? Let's delve into a detailed analysis.
Although the overall market sentiment still carries a sense of fear, the cryptocurrency market has seen a significant surge in the last 24 hours. Bitcoin (BTC) and the altcoin Ethereum SPX (SPX6900) have led the upward trend, indicating that buyers are regaining control.
The Fear and Greed Index for cryptocurrencies indicates that the market sentiment remains strongly bearish, with investors still struggling to overcome recent price drops. Currently, the index stands at 45, a “neutral” level in the market. This cautiousness among investors, however, seems to have created buying opportunities.
Historically, fear can sometimes create buying opportunities as it can signal undervaluation of assets. Traders seem to be capitalizing on this buying signal, as evidenced by the remarkable increase in the total cryptocurrency market capitalization (TOTAL) in the past 24 hours. It has gained $98 billion, reaching $2.8 trillion. The daily Balance of Power (BoP) indicator, at 0.58, confirms this strong buying pressure from market participants.
If buyers manage to consolidate their control and push back the sellers, TOTAL could continue its upward trend and reach $2.87 trillion. However, if profit-taking intensifies or sentiment turns more bearish, TOTAL could retreat to $2.70 trillion.
Regarding Bitcoin, the leading cryptocurrency is currently trading at $87,182, up by 3% over the last 24 hours. BTC’s steady rise over the past week has propelled it above the 20-day Exponential Moving Average (EMA), now acting as dynamic support at $85,047.
When an asset breaks above this moving average, it suggests increasing bullish momentum and a potential trend reversal to the upside. If this trend persists, BTC could extend its weekly gains and climb to $89,434. However, if buying pressure weakens again, BTC could lose its recent gains and retest the support at $85,036. A break below this level could then pave the way for a pullback to $77,114.
It is worth noting that a CME gap has formed up to $81,400. Although not mandatory, markets tend to revisit these gaps before moving on.
Among the altcoins, SPX stands out with an impressive 20% surge over the last 24 hours, currently trading at $0.62. This double-digit increase is accompanied by a significant rise in daily volume, highlighting sustained demand for this cryptocurrency. If this trend continues, SPX’s price could reach $0.67. However, a trend reversal could bring it back to $0.53.
Despite an overall climate of fear, the cryptocurrency market has experienced a robust recovery in the last 24 hours, driven by buyers seizing undervaluation opportunities. Bitcoin, SPX, and the total market capitalization have all seen substantial gains, indicating that this bullish momentum could continue in the short term. It remains to be seen if investors will overcome their fears and fuel this positive momentum.
Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
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.
