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The crypto market has demonstrated a short-term corrective rally in the last 24 hours, after major assets such as Ethereum have shown strong oversold conditions.
ETH, the native cryptocurrency of the Ethereum blockchain network, has intensified in a bearish trend since June, exhibiting a particularly negative performance against Bitcoin.
On September 13th ETH showed recovery capacity in the sub- $ 200 region, rebounding to $ 188 with a solid 9% increase in price. The recovery of Ethereum led to the 39; token price increase, allowing Decentraland (MANA), VeChain (VET), WanChain (WAN), Aion (AION), ICON (ICX) and 0x (ZRX) to increase by 10-20%.
What it means to recover the market
Even during a corrective rally, the market has shown the same trend that it has shown over the last three months. In the last 24 hours, Bitcoin has seen a slight increase in value, increasing by 2% to $ 6,400. The rest of the market, which experienced extreme volatility throughout September, showed strong upward movements.
Since February, the cryptography market has tested the region by $ 200 billion four times, in February, April, June and August. During all the corrections, Bitcoin showed stability in the low price range while others such as Ethereum, Bitcoin Cash, Ripple and small market capitalization cryptocurrencies have struggled to show resilience.
The minor movement in Bitcoin's price trend as opposed to the movement of the rest of the market suggests that the market has shown exhaustion in the low price range. As both major cryptocurrencies and tokens have suffered significantly against Bitcoin, it has become more difficult for bears to push the market below its current price range.
Economist and cryptocurrency trader Alex Kruger explained :
"Extreme speaking volume of exhaustion and" a "fund.A similar volume of exhaustion can be observed in Binance, Bitmex and Most trades, both against USD and BTC. "
But, as mentioned above, the September 13 corrective rally was caused by extremely oversold conditions, which do not necessarily lead to a mid-term rally or a & rsquo; full turnaround. As Kruger noted, it is very possible for Ethereum and the rest of the market to continue their recovery in the coming days, but to suffer another downward decline.
"The management of ETHUSD depends on BTCUSD.If BTC breaks $ 6,400 the next levels are $ 6,600 – $ 6,650 and $ 6,850.The ETH would break a lot harder.Time.Then expect the selloff to resume, BTC to break the lows of the year, hellfire between alts and ETH weaker than competing tokens.This is my point of view, "added Kruger.
Bottoming Out Process
The cryptocurrency market is still bottoming and evidently has not recovered from the correction of 80%. While it is difficult to see the market begin another major correction before a medium-term recovery, the major cryptocurrencies like Bitcoin and Ethereum will likely remain in the low price range for weeks or months before returning to previous levels.
in the short term, analysts consider the likelihood that Bitcoin exceeds the region of $ 6,000 at a relatively high level, bringing the rest of the market to the upside.
Featured image of Shutterstock. TradingView Charts.
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