- BTC’s price temporarily dropped below $25K over the past 24 hours due to the latest market selloff.
- A bullish chart pattern on BTC’s daily chart suggested that the cryptocurrency may recover back above $26K.
- .Technical indicators for the altcoin market hint at a further drop in the collective valuation of altcoins.
The latest market selloff resulted in Bitcoin (BTC) dropping below $25K over the past 24 hours. Meanwhile, the altcoin market also suffered the wrath of sellers throughout the past day of trading. As the market prepares for a comeback, technical indicators point to a potential increase in BTC’s price soon. Altcoins, however, may still bleed in the coming week.
BTC’s price may break out toward the upside in the coming few days as a bullish falling wedge pattern formed on the market leader’s daily chart. This was after BTC’s price printed a lower low during yesterday’s trading session. Furthermore, technical indicators on BTC’s daily chart suggested that momentum has shifted in favor of bulls over the past 48 hours.
During this period, the daily RSI line crossed above the daily RSI SMA line — signaling that buyers have gained the upper hand. In addition to this, the daily MACD line on BTC’s chart was beginning to break away above the daily MACD Signal line. These technical flags, if validated, could result in BTC’s price reclaiming a position above the $26K mark.
Thereafter, a daily close above the $26K threshold, which will also result in BTC closing above the 9-day EMA line, will clear a path for the cryptocurrency to continue to rise to $28,200. On the other hand, if the bullish falling wedge pattern is not validated, BTC’s price may look to retest the crucial support level at $24K in the coming week.
Meanwhile, the collective valuation of the altcoin market (TOTAL2) was testing a key support level at $495.11 billion at press time. It had broken below this level during yesterday’s trading session, but was able to recover. Subsequently, the total altcoin market cap was estimated to be $504.151 billion at press time.
A recent bearish technical flag that was triggered, however, suggests that altcoins could continue to bleed in the coming few days. Over the past 24 hours, the MACD line crossed below the MACD Signal line on TOTAL2’s daily chart. This signaled that the altcoin market has entered into a bearish trend. If the bearish momentum continues, TOTAL2 could reach $473.74 billion.
There is still a glimmer of hope, however, as the daily RSI line was attempting to cross above the daily RSI SMA line. If these two technical indicators cross, then the altcoin market’s value could climb to above $514.083 billion. A daily close above this barrier may then be followed by the altcoin market continuing to strengthen to reach $537.273 billion as well.
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