Published
1 year ago on
February 11, 2023
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Bitcoin and the altcoins have taken a tumble. Will this continue, or are they about to bounce?
Bitcoin bounce?
Bitcoin fell from $24,300 down to $21,500 in around 9 days, which equates to an 11.5% fall in value. Many are calling for the cryptocurrency king to fall a lot further and even for it to come down and find new lows.
When everyone starts planning for such a scenario we all know how that ends. The market will probably do the opposite. As it stands, bitcoin has fallen to the midpoint of the range between $25,225 and $17,600. It’s still too early to call, but a little bounce has already happened.
A golden cross has just taken place on the daily for bitcoin and even though this is a lagging indicator, it is likely to be seen by the market as a promising sign. Looking at the short term, things also look quite good. The Stochastic RSI is an indicator that signals momentum, and this is at the bottom for practically all the short term time frames from 2-day, down to 4-hourly. A cross up has the potential to force price higher.
Altcoins also
A similar scenario can be seen with altcoins. Even though the total market cap of altcoins was forced back into the downward sloping channel, price has seen a bounce off of the 200-day moving average.
It might be expected that the Total 3 at least moves back to retest the top of the channel, and with the daily Stochastic short term indicators also at the bottom, upwards movement could be forthcoming.
Latest narrative
Following on from the frenzied AI narrative that lasted quite some time, zero knowledge projects are the latest to run. Mina Protocol is one of the highest market caps in this category, and is riding high recently.
After a drop Mina has rebounded strongly and has recorded a 39% rise in only the last two days. Mina has arrived at the $1 resistance and a break through this could see it reach as high as the next resistance at $1.61.
Dusk Network is another of the zk high-flyers. The privacy project put on 84% for a price of 26 cents on Friday alone. It did pull back to close the day on 18 cents, but has continued its rise today and has reached over 21 cents at time of going to press. 28 cents beckons.
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.
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