The crypto space after a couple of days of plunging hard has witnessed a sigh of relief as the market turn greener. Most of the altcoins are currently trading above their respective resistance levels and may also hold for some more time. However, the flip or rebound may certainly not be considered a recovery as it appears to be another bull trap laid by the bulls or whales to sell a little higher.
The markets since the beginning of 2022 have been trading within a descending trend, including a couple of higher highs and lows. Therefore, a minor upswing fails to nullify the bearish impact completely. Hence, the present upward trajectory also may not stand strong until the BTC prices secure their levels above $21,800.
As per a popular analyst, the markets still show signs of continuing with the descending trend despite the current rebound.
The analyst compared the current market sentiments to that of May 2021 and says that the markets tend to fall further as the trend is towards the south.
How Will the BTC & ETH prices Trade in Q3?
Presently, BTC & ETH prices have again surged by nearly 6% & 9% resp, as happened earlier too. On the contrary, despite the extreme bearish trend and the Fear & Greed Index falling to levels close to 10 or lower, the masses are pretty bullish. Mainly due to the availability of liquidity which has enabled many traders to become a ‘Wholecoiner’. Nearly 878,357 addresses now hold at least one Bitcoin which is at the highest levels presently.
Therefore, it is extremely important for the traders to keep a close watch on the top 2 cryptos until the end of the present week. The possibility of Bitcoin getting rejected at around $20,800 is still open, as the upper resistance of a symmetrical triangle coincides at these levels. Therefore, a rejection at these levels may drain the price heavily.
As mentioned by a popular analyst, BTC prices are still hovering within the fear of rejection. If dropped from these levels, the price may again drop below $20,000 after a tough brawl at these levels. From here, another possibility emerges, where the asset could test the previous month’s lows and if fail to sustain may discover new lows ahead.
Collectively, traders are required to keep a close watch as th markets may remain greener for a couple of days ahead or until the end of this week. A strong upswing may only be validated if the Bitcoin(BTC) price settles not only above $20,800 but also above $21,800. However, a long leap beyond $22,300 may squash the bears to some extent.
Therefore, the crypto market trend may only change once these levels are tested and cleared.
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Source: https://coinpedia.org/price-analysis/crypto-markets-recover-aiming-to-stabilise-yet-the-bearish-trend-still-prevails/