Today’s been a rough day for the crypto markets, with Bitcoin’s recent capitulatory selloff reaching a boiling point this morning that subsequently led most other major altcoins to similarly see intense selloffs of 10% or more.
This movement has led the market structures of most digital assets to become firmly bearish, although one crypto-focused economist is now noting that he anticipates three cryptocurrencies to see notable bounces in the near-term.
There are three primary factors that play into his analysis, and the confluence of these factors could lead a handful of cryptocurrencies to see notable uptrends.
Bitcoin Selloff Creates Market Bloodbath; Key Levels to Watch For
At the time of writing, Bitcoin is trading down over 7% at its current price of $8,300, which marks a notable decline from daily highs that were set yesterday within the upper-$8,000 region.
BTC’s intense decline from these daily highs sent shockwaves throughout the aggregated crypto market, leading most major altcoins to also see capitulatory selloffs.
In the near-term, it is highly probable that the fate of these altcoins rests firmly in the hands of Bitcoin, as a failure for the cryptocurrency to recapture $8,400 before its daily and weekly close in a few hours could spell significant trouble for what comes next.
Nik Patel, a prominent cryptocurrency analyst, spoke about this in a recent tweet, explaining that a firm climb back above this level could suggest that the Bitcoin bottom is in – subsequently allowing altcoins to also surge higher.
“If we close today above $8400, I would be 75% sure the bottom is in. Why? SFPs of two important swing-lows, rejection from the 360MA and anyone thinking this is a break of a H&S neckline is trapped. Target would be 9250, then new highs if support reclaimed up there,” he explained.
*IF* we close today above $8400, I would be 75% sure the bottom is in.
Why? SFPs of two important swing-lows, rejection from the 360MA and anyone thinking this is a break of a H&S neckline is trapped.
Target would be 9250, then new highs if support reclaimed up there. pic.twitter.com/1pDjnvJLLj
— Nik Patel (@cointradernik) March 8, 2020
Economist: These Three Cryptos are Poised for a Major Bounce
Alex Krüger – a crypto-focused economist – recently echoed Patel’s sentiment, explaining in a tweet from his alt account that he believes Bitcoin, Tezos, and Ethereum could all be close to posting mid-term bottoms due to a few key technical factors.
“BTC ETH and XTZ. That’s what I got. Usually use larger stops when catching knifes, but bull trend looks over and if sub 8100 expect 7s soon. Keys for timing such entries, for me, are – high frequency volume data – higher time frame support level (8200) – intraday push count,” he explained.
The upcoming daily and weekly close should offer significant insight into where Bitcoin and the aggregated cryptocurrency market is heading next.
Featured image from Shutterstock.
Let’s block ads! (Why?)