After the price of Bitcoin succumbed yesterday to fears in the world markets and the expansion of the coronavirus, today Tuesday seems to be generating a sense of recovery in the main cryptocurrencies, with the price of Bitcoin giving a small bounce above USD 8,000 due to the complete closure of the entire gap in CME’s Bitcoin futures.
The bearish structure remains the same, only a rebound of relief seems to be being fulfilled for now and we could see the price of Bitcoin recede to levels below $8k.
By fulfilling that rebound, we could finally see what comes next. When writing, the price of Bitcoin is USD 8,136.95, earning more than 300 units from a recovery of + 3.74% in the last 24 hours.
Bitcoin rally comes from fulfilling a Sholuder-Head-Shoulder pattern that led to the downward gap and, as a user on twitter suggests, could be the beginning of a strong recovery in the price of the market-leading cryptocurrency.
BIG NEWS: #Bitcoin just filled the $7,685 CME gap!
There are now NO MORE GAPS below $BTC
So, we can finally get this bull run started as a safe haven asset!
— The Moon (@TheMoonCarl) March 9, 2020
For now, the cryptocurrency seems to go from rebound to rebound towards the end of the first quarter of 2020, which suggests a recovery to levels of UD 8,500 to start Q2 2020, thirty days prior to the next scheduled halving.
The feeling at this moment is of pressure towards the purchase of BTC with the RSI beginning to leave the sales area.
On the other hand, Aaron points to a temporary trend change, with its bearish signal beginning to decline as the price of BTC rapidly approaches the immediate resistance located at the EMA 200 levels at USD 8,480.
Altcoins also Recovering
A little below the table, the main altcoins of the market also follow the Bitcoin recovery pattern, after a black Monday marked by widespread uncertainty among investors.
Ethereum (ETH), the most important altcoin in the market in terms of market capitalization, is trading at an average price of USD 205.08 (+ 1.11%), after succumbing briefly below the $ 200 level.
Ethereum after entering the gray zone between the band of USD 185-195, which presumed to be a good moment of entry for LARGOS. Now that ETH recovers above USD 200 and we could see the altcoin bounce up to the levels of 61.8% fibonacci in the USD 220 band.
Its key support lies in the levels of EMA 200 in the two hundred dollars per Ether band and the RSI indicator has successfully rebounded from the oversold zone, reaching values close to 40.
For its part, the Ripple XRP token, the second most important altcoin in the market, also follows the market pattern and when writing it quotes at a spot price of USD 0.2144 with a recovery close to three percent, after lowering to the key limit of USD 0.20.
The XRP token now features an Elliot pattern that sees in the short term a rebound to USD 0.238 levels that could think of the possibility of a major recovery to the EMA 100 band at USD 0.2468.
In that sense, the RSI begins to leave the sales area slightly and the Aroon indicator for its part already shows signs of a change in trend with its bearish signal beginning to decline.