KuCoin Weekly Technical Overview: Bitcoin Remains Slow as Altcoins are Taking Over
After an unanticipated fall earlier last week, the cryptocurrency market is on the rise again. Although the present rally may be a retracement before heading south again, a few cryptos have proven this to be incorrect.
The fall appears to have reintroduced some pessimistic sentiment in the market, which had been moving higher in recent weeks. Under the worst circumstance, the present decline might be a reason for alarm because it has pushed prices inside lengthy resistance. The preceding rally to the upside has been savored, resulting in a spike at the top.
Having that said, a few cryptos have responded in the other direction relative to others. For instance, Solana (SOL) cryptocurrency has rebounded from the flash meltdown and is now trading at a new all-time high. Aside from SOL, a couple of others recovered in a V-shape pattern, keeping the trend of these altcoins intact.
Bitcoin Recovery Lags
The crypto market has recently suffered a plunge to the south, bringing prices back to support levels. The reaction from these support regions has been rather intriguing since the cryptos have all recovered (partially on their paths).
After briefly hitting the $53,000 level, the Bitcoin market, steadily rising from $47,100, tumbled. Within one four-hour candlestick, the prices had plummeted to as low as $43,000, a decrease of about nineteen percent from the recent highs. However, with the same rapidity with which it had plummeted, prices began to rebound a bit.
BTC is currently trading between the price levels - $47,500 and $45,000, with the closest resistance and support. The range also appears to be shifting briskly, as both parties have been playing with similar momentum. Also, as there are no higher lows or lower highs yet, the buying and selling strength appears to be the same.
When the price action of Bitcoin is contrasted to those of the best-performing crypto ventures, BTC emerges as the laggard. As previously said, few cryptos are achieving higher high sequences and rebounding rapidly amid the downturn. But, on the other hand, Bitcoin is not exhibiting evidence of V-shape recovery or higher high structure.
Bitcoin Alternatives Win Yet Again
Despite having a slower start to their ascent, altcoins frequently outperform Bitcoin. In the present bull market, things have been not unusual. Although BTC was the first to transit to an uptrend, altcoins quickly took control in the later weeks, suggesting that buyers are more fascinated with altcoins. But the cryptos that are part of the cloud outperforming the largest fish out there are a few.
To name a few, Solana, Avalanche, Terra have all experienced an immediate V-shape comeback as well as a brand new all-time high. SOL and LUNA were actively in the spotlight for their very bullish moves this cryptocurrency season, and now AVAX appears to have joined the team.
Bitcoin Price Action gets Calmer
In a matter of eight hours or so, the Bitcoin market dropped over $10,000. However, after reaching the $42,460 support level, the market responded strongly, bringing the price back to $47,000.
From the highest point, the price fell again as the sellers demonstrated their strength once more. However, the market did find support above $45,800, which was significantly higher than the previous bottom. Later, it proceeded as a sideways market after these support and resistance points were established. Moreover, despite the volatility in other crypto assets, the consolidation band narrowed further.
The highs getting lower every step of the way, and the support failing to hold a few times, clearly indicates the bears are trying to maintain ground.
Speaking biased towards the bulls, the market attempting to bounce up at higher prices (above $42,460) is also a sign that they are not willing to throw in the towel yet.
On the higher timeframe, the price region around $42,000 is extremely critical for BTC because it took several tries earlier for the buyers to breach above it successfully. Thus, after breaking through that rigid resistance, the turned support becomes equally as strong. And the price instantly reacting off it is evidence of the buyer's presence in the market.
Correlation in cryptocurrencies is a highly valued and reliable analysis tool. There are laggards in the market, but it does not imply that these markets are worthless. The same goes for Bitcoin as well. The world's largest crypto that started as a leader has turned into a follower lately. But given that BTC is still clearly in an uptrend on the bigger picture and the altcoins keeping the bullish sentiment still alive, a strong bullish push is anticipated on Bitcoin eventually.
Stay tuned and watch the KuCoin Blog for more interesting and valuable educational content. All the best!
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