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.
