Introduction
Crypto traders were pleased to see prices on the rise after a recent period of weakness. Many analysts had predicted that Bitcoin could retest support at $20,000, but instead, it experienced a rebound in value. While cryptocurrencies were climbing, the stock market faced pressure as investors awaited the Consumer Price Index (CPI) reading for the week. There are concerns that inflation may be increasing, as evidenced by the nine-month highs in the price of WTI crude and Brent oil. This led to declines in the S&P, Dow, and Nasdaq.
Bitcoin Reversal
Data from TradingView shows that Bitcoin reversed course from its low near $24,900 on Monday, climbing 6.65% on Tuesday. It reached an intraday high of $26,565 before settling above $26,000. Senior technical analyst Jim Wyckoff commented on the rebound in Bitcoin futures prices, stating that the bulls still have work to do to establish a market bottom. The bears currently have the advantage based on the daily chart. Michaël van de Poppe, founder of MN Trading, sees the recent pullback as an opportunity for Bitcoin to reclaim the 200-week EMA. If this happens, it could mark the end of the correction and the start of the next bull cycle wave.
Altcoin Market
The turnaround in BTC price buoyed the altcoin market, with all but a dozen tokens in the top 200 recording gains. Bitcoin Cash (BCH) was the top gainer, followed by Toncoin (TON) and VeChain (VET) with double-digit percentage increases. However, some tokens experienced losses, including tomiNet (TOMI) and SafePal (SFP). The overall cryptocurrency market cap now stands at $1.04 trillion, with Bitcoin’s dominance rate at 49.1%.
