Crypto coins across the board recovered strongly on Thursday, in a way that reminded investors that we are still in a bull market. Some altcoins, including Chainlink (LINK) and Synthetix (SNX), rallied powerfully, registering gains above 20 percent in the last 24 hours. Bitcoin, Ethereum, and XRP also resumed their upward movements but slowed down before making massive waves above critical levels.
The rebound had the whole market cap increase from Thursday’s $320 billion to the current $337 billion. A small change in the volume traded was registered from $92 billion to $94 billion, as per data showed on CoinMarketCap. The market is now mainly in green, but some cryptocurrencies are displaying signs of a further upward correction.
Cryptocurrency Market Capitalization
Bitcoin Prepares for a Challenging Ride
The king crypto coin confirmed the bull flag pattern experts mentioned earlier this week, topping $10,800. Still, the impressive recovery slowed as it failed to disperse the seller blockage at that level.
A retreat has been expected, with BTC revisiting levels beneath $10,700; the exhaustion the bulls are encountering is emphasized by the retreating Relative Strength Index (RSI). Consolidation would probably appear before Bitcoin heads towards breaking barriers at $12,000.
The first key resistance is at $10,800, and attempts to resume the uptrend to $12,000 must be prepared to handle resistances two and three at $11,000 and $11,200, respectively.
BTC/USD 4-hour Chart
IntoTheBlock’s IOMAP model shows that the coin’s path to $12,000 will be difficult. For example, the initial resistance line between $10,698 and $11,007 is sufficiently powerful to postpone the uptrend. As per the collected data, around 936,000 addresses previously purchased 516,660 BTC in this range.
An increase above this area would likely not make it past the most important resistance at $11,316 to $11,644. Here, 1.13 million addresses bought 667,890 BTC.
Bitcoin IOMAP Chart
On the other side, Bitcoin is currently above a zone with a massive concentration of buyers. Approximately 1.42 million addresses purchased 1.15 million BTC in the area between $10,369 and $10,516. The buying pressure in this range can decrease the impact of a reversal from the current price level.
What is interesting, though, is that some whales have been on a shopping spree as per Santiment’s holder distribution metric. The recent fall in the market provided investors with chances to buy the dip. Still, these whales could start selling, which would make it harder for Bitcoin to keep the uptrend.
Ethereum Quits Bullish Case to $360
The second-largest cryptocurrency aimed for $360 before the breakout that took place on Thursday. Even though a rebound took place, ETH did not get to the expected price. Rather, it saw a barrier at $355 because of an increase in selling pressure.
The 50 SMA at $360 has proved to be too difficult to pass, hence the retreat. At the time of the press, ETH/USD is staying at $343 amid a growing bearish momentum. The RSI highlights the momentum as it drops beneath the midline.
ETH/USD 4-hour Chart
The downward wedge pattern in the 4-hour range hints that Ethereum will ultimately regain the uptrend. Still, IntoTheBlock’s IOMAP shows that rebound could be postponed much longer because of the resistance between $354 and $365. Here, a bit over 414,000 addresses previously purchased 10.34 million ETH; we should note that if this vital resistance turns into support, Ether could rapidly get to $380.
Ethereum IOMAP Chart
The absence of crucial support areas could end up having a negative impact on Ethereum in the near term on the downside. Crafty support is emphasized between $334 and $343, where almost 688,000 addresses bought 2.96 million ETH. Drops could revisit the recent support at $310 if the scale between $334 and $343 gives in.
XRP Remains With a Lower High Pattern
In spite of recovering from the support at $0.22, XRP still has a long way to go to establish a strong uptrend. A look at the 4-hour chart shows that the crypto is trading a higher low pattern, and it is not able to pass the descending trendline resistance.
Moreover, the RSI has deflected off the midline, and its retreat would predict a rise in selling activities. On the upside, XRP will encounter a difficult challenge at $0.24, a resistance emphasized by the 50 SMA.
XRP/USD 4-hour Chart
As per Santiment’s holder distribution metric, a downtrend in the number of whales holding between 1 million and 10 million XRP could be gripping the buying pressure in the market. These whales have decreased from 1,348 on September 22nd to 1,334 on September 25th. If the massive volume holders’ pressure keeps increasing, we can expect XRP to head towards the support line at $0.22 or $0.20 relatively soon.
The crypto market is probably going to take a minute after a strong recovery on Thursday. Bitcoin could see consolidation, resting on the support emphasized between $10,369 and $10,516. The support will offer the bulls enough time to refresh before launching another attack on important levels at $10,800, $11,000, and $11,200.
On the other hand, Ethereum is not yet done with the downside, and support at $310 could be rejuvenated. Meanwhile, XRP encounters an uphill movement because if it doesn’t break above the 50 SMA at $0.24, there’s a possibility for prices to drop in order to refresh support at $0.22.