Following Monday’s selloff, cryptocurrency markets mostly rebounded across the board, with bitcoin and ethereum prices rallying by as much as 10%. Overall the global crypto market cap was over 6% higher from yesterday’s session.
Bitcoin
Bitcoin, which fell to an intraday low of $33,184.06 in yesterday’s session, was up nearly 9% at the time of writing, hitting a high of $37,247.52 in the process.
After a false breakout from its support level of $34,170 to start the week, today’s move saw BTC/USD climb from this point, with some anticipating the potential for a rally towards resistance of $40,000.
Looking at the chart below, BTC bulls appear to have re-entered as much as expected at this level, similar to July’s move, but with the RSI still oversold, many remain skeptical of a full-scale bull run.
Now that the short-term 10-day EMA (red) has somewhat eased its downward momentum, traders will be anticipating a potential reversal, as the chances of the upward cross gradually increase. One thing to consider is whether we are seeing long-term bitcoiners buying the dip.
Ethereum
Over the past seven days, ETH has fallen over 20% in value, but Tuesday saw a slight release of that bearish pressure as the bulls got back in the running.
As of writing, ETH/USD rose to an intraday high of $2,463.59, after almost falling below $2,000 on Monday, recording its lowest rate since July as a result.
Looking at today’s chart, it appears to show that ETH has found a temporary bottom, despite the long-term descending triangle hinting at further downside pressure.
Similar to BTC, Ethereum price action is still oversold, however as it gradually moves towards the 30 RSI level, the question is if we will see bullish sentiment begin to increase.
