The cryptocurrency markets have recovered from yesterday’s mid-day drop, and virtually all major cryptocurrencies are trading up over a 24-hour trading period. Some of today’s best performing altcoins are trading up over 10%.
Bitcoin Swiftly Recovers From Yesterday’s Drop
At the time of writing, Bitcoin is trading up over 6% at its current price of $3,960. Yesterday morning, Bitcoin dropped below its support level of $3,800 to lows of just over $3,600, price levels from which it swiftly recovered from this morning.
Despite having a quick recovery, at the time, the drop appeared to be fundamentally significant. Mati Greenspan, the senior market analyst at eToro, explained that the break of the $3,800 support could lead Bitcoin back to its yearly lows.
Clearly, the recent drop did not have a significant amount of selling volume behind it, allowing the bulls to gain the upper hand this morning.
Alex Krüger, an economist who focuses primarily on cryptocurrencies, told his followers in a recent tweet that he expects Bitcoin to establish a wide trading range in the mid-term between $2,500 to $5,500, and that he is buying the dips within this range.
“Expect a wide range from here: $5500-$2500 (bold call, I know). Looking to trade the range,” Krüger said, later adding that traders are supposed to “buy the dip” and not “sell the bottom.”
Altcoins Surge, Led by {{0|Ethereum}} and Bitcoin Cash
Today’s market surge has been led by Ethereum and Bitcoin Cash, which are both trading up over 10%.
At the time of writing, Ethereum (ETH) is trading up 13% at its current price of $137. ETH has recovered significantly from its 24-hour lows of $115, which were set yesterday after Ethereum fell from $126.
Bitcoin Cash (BCH) is also trading up significantly over a 24-hour trading period and is currently up nearly 13% at its current price of $176. Bitcoin Cash has recovered from its 24-hour lows of $144.
XRP has been closely tracking Bitcoin’s price actions and is trading up 6% at its current price of $0.378. XRP is up from its daily low of $0.338 but is down from its one-week highs of nearly $0.45.
The markets are seeing increasing trading volume, which signals that the upwards momentum may continue as the day goes on.