The larger cryptocurrency market seems to be in the early stages of recovery with many Altcoins regaining their footing after correcting by 20% to 30% on Sept. 7. At the time of post, several tokens in this category were posting significant gains, some even notching double-digit gains as large as 40%.
Tokens such as Solana (SOL, +25.08%), Algorand (ALGO, +28.49%), Arweave (AR, +24.42%), Fantom (FTM, +35.55%), Elrond (EGLD, +35.95%), Raydium (RAY, +34.86%), IOST (IOST, +25.22%), Mina (MINA, +30.71%), Serum (SRM, +43.74%), Nervos Network (CKB, +36.24%) were significantly up in the last 24 hours.
On-chain analytics firm, Santiment speaks on the Altcoin market recovery, stating: “As is usually the case on market-wide dips, the trading crowd rallied to buy the dip. Calls related to buy, buying, or bought soared to levels last seen in May. Altcoins, in particular, is recovering quite healthily currently”
Bitcoin is presently consolidating near $47,000 after a sharp sell-off on Tuesday. The lead asset is up slightly by 1.30% over the past 24 hours, while bears mount barricades near the $50,000 resistance zone.
Shiba Inu (SHIB) remains a top gainer amid the dog pack, up nearly 20% in the last 24 hours after marking the second consecutive day in the green. SHIB rose from Tuesday’s market crash lows of $0.00000507 to reach highs of $0.00000820 on Sept. 8.
The recent rise alludes to Coinbase Pro releasing a major announcement for SHIB stating: ”Inbound transfers for SHIB are now available in the regions where trading is supported. Traders cannot place orders and no orders will be filled. Trading will begin on or after 9 AM PT on Thursday, September 9, if liquidity conditions are met.”
Hedera Hashgraph (HBAR) plunged to lows of $0.221 from highs of $0.349 during Tuesday’s flash crash. Taken from the lows, the altcoin has posted a near 52% recovery to reach highs of $0.3718 today.
Is the BTC Market Setting Up a Bear Trap?
Improved performance across major Altcoins, meanwhile, is giving hope to the bullish short-term case for Bitcoin. Another bullish news on the radar is that the Ukrainian government may soon legalize cryptocurrencies as a bill has been passed to allow banks to take on digital asset company accounts. This is significant as Ukraine remains a top adopter of cryptocurrencies.
However, despite the market-wide recovery, Bitcoin price is stagnating under resistance, dulling hopes of further recovery. The Bitcoin fear and greed index considered an indicator of the overall sentiment of traders in the market, currently indicates “fear.” Adrian Nazari, the Founder, and CEO of “The Birb Nest,” States:
”Crowds are always right in the middle of a trend but always wrong at the extremes.”
Crypto Fear & Greed Index, Courtesy: Alternative.me
Market analysts have over time deduced that ”A negative sentiment could be a solid recipe for a bounce.”
In the case Bitcoin price sets up a bear trap, prices may rally in the coming sessions. A bear trap is a trading term used to describe market situations that indicate a downturn in prices but leads to higher prices. Analysts however remain mixed on Bitcoin’s price outlook.
Popular trader Crypto Ed stated on Wednesday: “Looks like a bullish pennant to me…Impulsive bounce followed by consolidation,” He puts a word of caution- “Chill and waits for the break out. Wrong when it breaks down.”
Cryptoanalyst, PentoshiWontDMYou states that Bitcoin price should give a clearer direction in the coming weeks, saying:
”Think we probably get something along these lines in the coming weeks ..Roughly a period of consolidation. The macro picture is unchanged”.
Image Credit: Alternative.me, Shutterstock