$BTC bounces back, triggering altcoin rally
Bitcoin has experienced a bounceback after a 7% loss earlier this week. This upward movement has also had a positive impact on altcoins, leading to a more optimistic outlook for the cryptocurrency market. However, the question remains whether this bounce will be sustained.
Altcoins find support at total market cap
The Total3 chart, which represents the combined market cap of all altcoins except Bitcoin and Ethereum, shows that despite briefly falling below the support level of $463 billion, altcoin prices have stabilized. This support level is crucial for altcoins, but the critical safety net lies at $400 billion.
Kaspa (KAS) breaks out
One of the standout performers in the altcoin market is Kaspa (KAS), which has seen a 5.5% increase in price and a breakout to reach resistance at $0.103.
Solana (SOL) shows positive movement
Another altcoin showing promising movement is Solana (SOL), currently leading the pack. If it can surpass the resistance at $87, it has the potential to break out of its downward trend line that has been in place since Christmas day.
Correction not yet over?
Despite the positive price action, it’s important to remember that the cryptocurrency market could still be experiencing a general correction. Traders and investors need to be cautious as the correction may not be fully resolved.
While there is a possibility that Bitcoin could reach the resistance level at $44,300, attracting more long positions, the selling pressure from Grayscale ETF and the upcoming release of Mt Gox bitcoin could impact the price negatively. Trade wisely.
Hot Take: Altcoins Ride Bitcoin’s Bounce—Will It Last?
The recent bounceback of Bitcoin has not only lifted its own price but has also provided a much-needed boost to altcoins. With altcoins finding support and some leaders breaking out, there is a wave of optimism in the crypto market. However, it is important to be cautious as the market may still be in a correction phase. Factors such as the Grayscale ETF selling and the release of Mt Gox bitcoin can put downward pressure on Bitcoin’s price. So, while the current rally is encouraging, it remains to be seen if it will sustain in the long term.
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