Bitcoin has bounced after losing as much as 7% over Monday and Tuesday. This relief bounce has also released the altcoins from their chains, and right now the crypto market is looking a whole lot rosier. But will it last?
$BTC bounce causes sharp altcoin reaction
Bitcoin is currently up on the day so far, and having started its bounce on Tuesday, it is continuing this upside move on Wednesday. Altcoins are certainly benefiting from this move, and some of the top alts are already outperforming $BTC to the upside.
Total market cap of altcoins at support
Source: Trading View
The Total3 chart is the combined market cap of all the altcoins, excepting $BTC and $ETH. It is showing that despite dipping under the strong support at $463 billion, the price is now resting back on top. This support looks to be very important for altcoins, although the support at $400 billion would be the critical safety net.
Kaspa (KAS) breaks out
Source: Trading View
That said, altcoins are moving into a bit of a frenzy on Wednesday morning British time. Kaspa (KAS) is one of the leaders. Up 5.5% on the day thus far, the price has broken out and is currently at the resistance of $0.103.
Solana (SOL) moving positively
Source: Trading View
Solana (SOL) is another altcoin leading the rest of the pack. If $SOL can overcome resistance at $87 it then has a chance to break out of the downward trend line which has held the price down since Christmas day.
Correction not over?
With all the positive price action so far on Wednesday, it is easy to forget that we are probably still in the midst of a general market correction. Traders and investors should be very aware that the corrective impulse may not be over.
It might be very possible that $BTC could even go as high as the resistance at $44,300, which is likely to pull many traders into long positions. However, the Grayscale ETF selling, and the impending release of Mt Gox bitcoin onto the market, are likely to provide a heavy downward weight on the bitcoin price. Trade cautiously.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
