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The crypto market suffered quite a slump on Monday, perhaps on news of the renewed conflict between Israel and Palestine. The market is staging a recovery early on Tuesday.
An odd trading day on Monday saw traditional markets continue their upward movement following a sideways weekend, but in the world of cryptocurrencies it was a rough day for most assets.
Bitcoin still below the 200-week MA
Bitcoin saw a 1.2% fall on the day, and at one point the king of the crypto assets fell as much as 2.3% before recovering later in the day. The bad news for bitcoin is that it is still penned in beneath the 200-week moving average, which is probably the most important indicator to signal if bitcoin is to continue the upward trend since 11 September.
Bitcoin did quickly dip below this trend line on the short time frame but recovered and continues above. The moment of truth is arriving in the next 3 or 4 days when the trend is due to converge with the 200-week MA.
The rest of the crypto market is still following in bitcoin’s wake. Dominance remains strong at over 51%, and there is a good possibility that it may turn this level into support. The trend is unbroken all the way back to early January of this year and may reflect the regulatory uncertainty for altcoins as compared with bitcoin.
Ethereum moment of truth approaching
Be that as it may, Ethereum isn’t going away any time soon. The arguments still rage over whether it should be seen as a commodity like bitcoin, but meanwhile the number 2 crypto asset by market cap is continuing to hold its own very strong trend.
Squashed in on top of its trend line but below resistance, $ETH should make the decision to drop the trend or break this resistance, perhaps within the next day or two.
Solana bull flag
Solana, the nearest layer-1 competitor to ethereum, has seen a nice little bounce off of support at around $21.84 and is up 1.35% so far this morning.
Monday’s dump hit $SOL quite hard and saw it lose as much as 7% at one point. However, this took the price down to the bottom of a bull flag that has been forming since the first of October. This held, and $SOL has started moving back towards the top of the flag today. A breakout could see $SOL move to $29.
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.