The previous week was one that many would love to forget. The main reason for such is the decline in the price of most cryptocurrencies. This also reflected in the global cryptocurrency market as we notice a sharp drop in value.
It kicked off the session with valuations at $1.02 trillion. However, as the seven-day period progressed, it experienced a massive decline in worth. It dipped to a low of $914 billion but showed signs of recovery and closed at $985 billion; signifying an almost 5% drop in value.
Most cryptocurrencies successfully erased the incurred losses due to a two-day surge in the weekends. This also sets the trend for more price increases. This is what we are seeing at the time of writing as the crypto is having one of its biggest rallies.
This was also bouyed by the Feds forecasting a decrease in inflation. The release of CPI report also played an important role in the present bullish sentiment in the sector under consideration. Let’s see how some assets may perform this week
Top Four Cryptocurrencies to Watch
BTC/USD
Bitcoin retested several key levels during the previous intraweek session. It opened the week at $22k but dipped to a low of $19k. This also impacted prices as we noticed the massive bearish signals on indicators.
For example, the Relative Strength Index briefly dipped below 30 at the peak of the bearish dominance. The Moving Average Convergence Divergence was also affected as it dipped below 0. Additionally, we noticed 200-day MA arched and may start a downtrend.
While all these readings spelt out more downtrends for the top asset, fundamentals are opposing this outlook. Following several positive news, we observed an increase in buying volume as bitcoin price hit its highest in more than eight months.
As a result, both MACD and RSI are looking better. For example, both metrics left their various danger zones and are more healthy; displaying signal of further price increases. It is worth noting that the highlighted MA is showing no signs of improvement.
A look at candlesticks pattern point the opposite of what the bullish indicators are saying. It is inverted hammer which only indicates the end of an uptrend. If this plays out, BTC may return to struggling to hold key supports. A clear indication of this is its peak and current price.
The apex coin surged to a high of $26,400. Currently at $24,700, it failed to hold on to the $25k barrier. On the other hand, we may expect the effect of the bullish fundamentals to continue. In such a case, we expect an attempt at $27k.
