Bitcoin hodlers and investors have been on tenterhooks these last few weeks. All the gains since the beginning of the year have been wiped off and FUD out of China has seen Bitcoin flirting with a disastrous entry into a new bear market. Bulls have though been able to hold the all-important $30,000 level and now we may be seeing the first signs of green shoots recovery.
Bitcoin has been trending down and sideways in a descending triangle for what is now the seventh week. Descending triangles are bearish trading patterns that feature a series of lower lows for the descending line, and a series of equal lows for the bottom line.
If the price does break below the bottom line support, then downside momentum would look to continue and a sharp plummet to $25,000 and below could be anticipated.
Bitcoin 4-hourly chart. Trading View.
However, Bitcoin can never be relied upon to do the obvious, and over the last few hours the price has broken above the triangle. A 4-hour candle has broken out and the following 4-hour candle has come back to retest. Whether this is in fact a retest, or a fake-out, is yet to be seen.
As Bitcoin hopefully starts its journey back to new highs, Ethereum looks to have woken up as well. A lower low, made a week ago, was nearly matched by another low on Saturday. Nonetheless, three green daily candles have pushed the price back up over the $2000 level, and at time of writing Ethereum is pushing against major resistance at the $2050 level.
Ethereum 4-hourly chart. Trading View.
Currently, the vast majority of the cryptocurrency market is following suit, with mainly green across the board. Certain cryptocurrencies are coming back stronger given the good news coming in the not-too-distant future.
One such project is Kusama (KSM). Parachain auctions are now starting to happen on the Polkadot canary network. Several competing projects for parachain slots have each raised more than $200 million – all in KSM, which will be locked up for a minimum of 48 weeks, thereby applying constant upward pressure on the Kusama price.
Another cryptocurrency with good fundamentals and a strong bounce back is THORChain (RUNE). Up more than 7% on the day, RUNE has made a 50% increase over the previous week and is looking to break resistance here in order to be able to move up and test the all-time-high set in mid-May.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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