The global cryptocurrency market cap increased slightly over the last 24 hours while Bitcoin (BTC) also showed some signs of recovery. But does it mean that the latest crypto market crash is over?
On CoinMarketCap, there has been a lot of change in the top 10 crypto ranking and market capitalisation numbers of several tokens. While Terra (Luna) is now out or even top 20 cryptos, Dogecoin is back at 10th rank in terms of market capitalisation. Interestingly, cryptos like BNB, Ethereum and XRP have shown higher rate of recovery as compared to Bitcoin in the last 24 hours.
Experts think that crypto markets appear to be recovering from the recent crash but the atmosphere of “extreme fear” continues in crypto community.
“Even as Bitcoin’s price stabilised around the $30,000 level, data from Glassnode suggested that there was a spike in BTC transfer volume to exchanges. This implies that many traders were moving their BTC to exchanges to sell. Similar to how BTC’s correlation to the S&P 500 restricted the asset’s recovery, ETH’s correlation to BTC led to the altcoin trading closely with BTC,” Darshan Bathija, CEO and Co-Founder of Vauld, told FE Online.
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“Compared to Bitcoin, some altcoins like MATIC posted gains, suggesting that traders still showed a greater risk appetite. Having said that, the overall crypto market sentiment was still at the levels that implied extreme fear,” he added.
Altcoins outperform BTC
Prices of most of the altcoins have increased, outperforming BTC in the past 24 hours. Bitcoin showed some minor signs of recovery on Wednesday.
“BTC’s support at US$30,000 could keep the short-term buyers active, while resistance holds at US$35,000. The second-largest cryptocurrency, Ethereum, also rose by nearly 3% after dropping below US$2,300 for the first time since January. The UST also returned to US$0.90 as the LFG’s bitcoin reserves outweighed its worn-out supply on exchanges. The market seems to have started to recover a bit from the recent downward trend,” Edul Patel, CEO and Co-founder, Mudrex, said.
Next support for BTC at $28,600?
After a significant correction that led to Bitcoin plummeting below the $30,000, BTC appeared to have recovered back to edge above the $31K level as the market sentiment of fear cooled-off a bit, WazirX Trade Desk said in a note.
However, Bitcoin still remains in the oversold zone.
“On the daily time-frame, the trend for BTC is on the verge of breaking below the long formed triangle pattern. The trend could bounce back from this support level. If, however, the chart breaks below the pattern, then the next support for BTC can be expected at $28,600. The daily RSI for Bitcoin recovered back marginally but still remains at an oversold zone.,” the note said.
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