The past few weeks have been quite negative for Bitcoin and the synthetic crypto market, with many major altcoins having a strong downtrend erasing a significant amount of profits generated in the first month of 2020.
However, most of the major cryptocurrencies currently near the critical support level could catalyze a violent relief rally.
The crypto market is about to have a big rally
At the time of writing, Bitcoin is trading sideways around the $ 8700 mark, marking a noticeable increase from the daily low of $ 8,400 set as the bears attempt to catalyze a massive sell-off just after one night.
The bull was able to accelerate and absorb most of this selling pressure, then allow BTC to regain its key support at $ 8,700.
This BTC volatility has caused the synthetic crypto market to move at the same time, with many large altcoins deciding to bounce off their daily lows.
TraderCrypto Michaël talked about markets in a recent tweet, explaining that he expects BTC and major altcoins to decline slightly before they find strong support.
"If the markets fall once more to the south (and we lose these levels), I will see $ 190-195 for ETH and $ 7,500-7,700 for BTC. Hopefully we will also see some relief in the stock market after such a great week. "
If the markets make one more further drop south (and we lose these levels), fluctd be watching 190-195 $ for $ ETH and $ 7,500-7,700 for $ BTC.
Think we also should see some relief in the equities markets after such a terrific week.
– Crypto Michaël (@CryptoMichNL) February 28, 2020
Not only did Michaël think that Bitcoin and the market would fall further before finding some catalysts to support the significant uptrend. Analyst Murad recently gave a very interesting chart of the total market capitalization of cryptocurrencies.
While looking at the chart, it seems that the market is trading in a large flag, with this potential meaning, something very big is about to appear.
"The motivations are very interesting on the total graph. There seems to be an exact axis at the intersection of the two most important diagonal lines on the sum chart. BTC might be preparing for something huge? "
Very interesting dynamic on the TOTAL chart. There seems to be a generational pivot officially at the intersection of the two most important diagonals on the entire chart dating back to the ATH.
Could BTC be coiling in preparation for something huge? pic.twitter.com/BNwuRs8Bo6
– Murad (@MustStopMurad) February 28, 2020
If the cryptocurrency market drops lower before generating strong bullish momentum, it is likely that this pattern will be confirmed, meaning that a major movement is about to occur.
Traders are buying BTC dip
A well-known technical analyst said he was buying BTC despite defying price projections and widespread fear in the market.
Light Crypto say Global equity markets are showing signs of a potential bottom, which could be a good signal for BTC. That, combined with the fact that gold prices fell more than Bitcoin on Friday, made him feel optimistic about Bitcoin in the short term.
He is also pointing to an analysis from Cantering Clark, who said relief could come if BTC can sustain above $ 8,600.
/ 5 This sort of spasticated action with price not budging downwards is indicative of a large, patient latent buying interest.
And while selling has hammered the bid, few asks have been inserted above, opening the market to the opportunity of a surprisingly large move upwards. pic.twitter.com/7jsE9bPrfr
– light (@LightCrypto) February 28, 2020
Not only that, Light also pointed out the positive psychology of the upcoming Bitcoin halving as a reason for his optimism.
"External factors that drive the price of BTC often bring great opportunities. And with halving getting closer every day, and that story showing its potential strength in January, the inherent tilt of Bitcoin is flooding my mind. "
Disclaimer: This is not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
Annie
Bitcoin Magazine | Newsbtc
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