Following the crypto market’s recent downturn that sent many altcoins spiraling down 10% or more as Bitcoin fell to lows of approximately $3,550, the markets have regained some strength and bounced today, leading most altcoins to surge 5% or more.
Today’s upwards move after a volatile weekend seems to confirm that Bitcoin is in fact caught in a trading range between $3,550 and $4,200, as analysts previously expected.
Bitcoin Confirms Previously Suspected Trading Range
At the time of writing, Bitcoin is trading up nearly 4% at its current price of $3,710.
On Saturday, Bitcoin plunged to lows of $3,550 from the mid-$3,600 region, which appeared to many traders as the continuance of a downwards momentum that Bitcoin has incurred after it failed to stabilize above $4,000 last week.
Today’s price surge, however, confirmed that Bitcoin does have support at $3,550, which is the price at which Bitcoin surged earlier today.
Mati Greenspan, the senior market analyst at eToro, previously noted that he believes Bitcoin is presently caught in a trading range between $3,550 and $4,200, an assessment that was validated by today’s move.
“It seems now, that bitcoin has opened a new mini-range within that from $3,550 to approximately $4,200… Movements within a range can sometimes be sudden like we saw yesterday, but unless there’s a breakout of the key levels there really isn’t much to write home about,” Greenspan explained in a market update last week.
The Trading Room, a popular cryptocurrency analyst group on Twitter, spoke about the market’s recent jump, noting that all key price levels held firm, which validated the crypto market’s recent lows as strong support levels.
“All key levels held firm & we are getting a perfect bounce so far. Will look for long entries on confirmation of trend change,” they said.
Altcoins Surge as Crypto Markets Recover from Recent Drop
The general crypto markets have recovered well from the recent drop that sent many altcoins down 10% or more.
At the time of writing, XRP is trading up nearly 5% at its current price of $0.336. This weekend, XRP fell to lows of $0.317, which appeared to act as a level of relative support. XRP is still down significantly, however, from its weekly highs of $0.38, which were hit right before Bitcoin broke below $4,000.
Ethereum has surged today and is currently trading up over 10% at its current price of nearly $130.
Ethereum’s positive price action today was not unsuspected, as DonAlt, a popular cryptocurrency trader on Twitter, aptly noted that Ethereum was nearing a buy target he had set for several months.
“Playing out nicely. The dip into the buy area was bought up entirely. I still think another visit there is very possible, that said I definitely am not looking for swing (longer term) shorts here. Zooming out & taking it slow makes trading tremendously easier,” he explained while referencing a long-term Ethereum price chart.
If Bitcoin’s price is able to climb into the low-$4,000 region in the coming days or weeks, the validity of $4,200 as a strong level as resistance will be validated.
Featured image from Shutterstock.