The cryptocurrency market has spent a better part of the last 24 hours trading in a roughly sideways manner around the psychological levels and has staged a relief rally in the past hours, although it’s still too early to call a bottom.
Since bitcoin broke US $30,000 support level briefly on Tuesday before dip buying kicked in, as encouraging as its comeback has been over the past hours, bulls appear to have little faith in it as fears of further fallout from the recent negative developments continues to fuel caution and broad risk-off sentiment.
The consolidation may have brought a little to the battered bulls and suggests a temporary low is in place at the psychological US $30,000 mark.
At this point although most major coins are facing the resistance where sellers have lined up, slowing further ascent, positive traction is still possible if strong consolidation at the current levels persist.
The entire cryptocurrency market has almost been closely moving in lockstep with bitcoin throughout the past several days.
As of press time, in the Top 10 big caps, Bitcoin (BTC) is changing virtual hands at US $34,080, Ether (ETH) at US $2,020, ripple (XRP) at US $0.60, Binance Coin (BNB) US $291, cardano (ADA) at US $1.26, Dogecoin (DOGE) at US $0.22, ChainLink (Link) at US $19, UniSwap (UNI) at US $18, Polkadot (DOT) at US $16 and Stellar (XML) at US $0.26.
It is hard to say whether the rebound is sustainable given the lack of direction and momentum as the buy volumes are still trailing, and any peaks are sharply sold off by bears who have lined up along the resistance levels.
The 50-hour MA (moving average), 100-hour MA, and 200-hour MA are still all bear biased (sloping downwards), so the rally will likely be short-lived unless the market finds itself in an unexpected realm of improving fundamentals.
The cryptocurrency market will likely stay in a bit of a holding pattern waiting for the next catalyst and it is just a question of whether that catalyst is going to be a positive one or a negative one.
Persisting subdued market activity will likely open new lows, pushing bitcoin to the US $20,000 levels.