Bitcoin price surges 15 percent to $9,500 after the weekend’s sharp decline. Is this a sign of recovery or a bull trap?
Once again, we welcome our readers and hope that during the weekend you were able to remain calm- after all, investors had plenty of cause for concern. Price fluctuations in the cryptocurrency market are not unlike an extreme roller coaster ride.
It’s important to remember that seat belts are securely fastened, the trolley is not going to fall into the abyss, and if you avoid hasty decisions, in the end, you will experience not only an adrenaline rush but an exceptionally pleasurable ride.
By the beginning of Monday, the market returned to the life-affirming green shade. For now, we are just talking about recapturing lost positions, but after the uncertainty of the last two days, even these results look hopeful and promising of imminent change.
The total market capitalization returned to the values of March 8 at $390 bln, while Bitcoin dominance is 41.8 percent, and the asset is trading around the $9,500 mark.
Last week, we noted a 42 percent dominance for Bitcoin- a slight decline, in this case, indicates a show of buyer interest for altcoins, whose prices are at very attractive levels at the moment.
Altcoins follow the main asset’s lead
In the top 10 assets, prices are marching in step, with increases ranging from seven to 14 percent in the course of the day. Bitcoin Cash, which hasn’t shown any impressive results for several weeks, is in first place with 14.2 percent. Next are Cardano and Monero, who gained 11 percent each, and the leader ranks are rounded out by Bitcoin itself with a 10 percent increase. Close relations Ripple and Stellar are trailing behind, with gains of four and six percent respectively.
BTC/USD
We begin the analysis of individual assets as usual with Bitcoin. To better understand where we are now, we provide an enlarged image of a four-hour time frame. First of all, let’s note that the upper boundary of the long-term descending channel has lost its significance since in the last few days it has been broken multiple times from below and from above without any visible effort.
The price turned out to be much more sensitive to the lower boundary of the long-term ascending channel, which is what kept the price from declining further. The minimum value over the weekend was $8,400, is exactly in line with our March 9 estimate. We can also congratulate readers who followed our advice and grew long positions from those levels. The Fibonacci grid, stretched from the minimum of the February correction to the $11,800 maximum, remains relevant. At the moment, the price is stuck at the strong 0.382 level, which corresponds to the boundary of the parallel ascending channel.
A more detailed examination of the hourly time frame leads to several important conclusions. Firstly, the lower boundary of the ascending channel has sustained as many as five bull attacks. Secondly, we see the activated “double bottom” pattern which indicates buyer strength. Nevertheless, the bulls have not managed to overcome the resistance formed by the upper boundary of that same channel, and indecision can become a trap they set for themselves. During the day, we expect either a break through the resistance, bringing the price to the level of $10,000-$10,200 or a fall back to $8,900-$9,000 which will not be critical- although it will delay further growth, it will allow buyers to gather their strength.
BCH/USD
For Bitcoin Cash, a rapid growth of 14 percent does not seem like something outstanding, since it gave investors few reasons for joy up until this point. During the current correction, the minimum value was $920, but quite soon the price returned into the boundaries of the descending channel, marked in red. The chart also shows something resembling a “double bottom” (we will remind readers that perfect graphic patterns are very rarely encountered), which helped bring the price to the current values.
Additional support was formed by the 0.786 Fibonacci retracement, which coincides with the price of $950. We believe that if Bitcoin price decreases, buyers will be able to rely on this level again. The main target of the bulls at the moment is represented by the level of $1,300, but they must break through the boundary of the descending channel first, which may prove to be difficult. The complexity of the task will be decreased only in case of complete market reversal and the rise of Bitcoin price to $10,500. The intermediate growth target is $1,200, corresponding to the 0.5 value of the Fibonacci grid.
Source: https://cryptocomes.com/bitcoin-price-rollercoaster-shakes-all-investors-what-expect