In the aftermath of last week’s cryptocurrency market bloodbath, Bitcoin and other altcoins are beginning to see a downside correction in price. BTC broke through the $5.3k resistance and shot all the way above $6000 support level in a series of green candles over the last couple of sessions. Similarly, most major altcoins are beginning the climb back to recovery and are approaching key support levels. Overall, the crypto market cap rose by $23.8 billion in the last 24 hours.
After days of market price free fall, the crypto community can finally afford a smile as prices seem to be on the rise once again. Led by the crypto king, Bitcoin, the cryptocurrency market went up by nearly 20% in 24 hours, rekindling hope that was virtually nonexistent last week.
At the time of writing, Bitcoin is changing hands at the $6500 to $6650 price levels, though it crossed the $7k price level just a few hours earlier. Ethereum is trading between the $140 and $145 price levels, while XRP is trading between $0.14 and $0.17. Overall, the crypto market cap saw a sharp rise of about $23.8 billion to close at over $175 billion as of March 20.
Other Altcoins Market Today
Bitcoin cash is currently trading above the $200 level and if it is able to maintain then support level, then bulls may be encouraged to push even higher in the coming sessions. Litecoin is currently trading in the green as well at the $40 price level, which may continue to rise should the bull run maintain its current momentum in the near term.
Over the last couple of trading sessions, several other small-capitalization crypto coins also showed signs of recovery, some posting gains of over 10%, including STEEM, NMR, ALGO, XZC, SNT, ENJ, DASH, NANO, GNT, BCN, REP, ZEC, and REN. STEEM appears to have led the pack with a rally close to 200% while NMR went up around 125%.
Could the Current Selloff in Forex be the Reason for this Crypto Rally?
For many people, these recent crypto price gains are not a coincidence, but rather in reaction to the sell-off in fiat currencies.
For instance, the exchange rate of the British pound-to-dollar is hovering near 1.1555 to 1.18 levels, which is the lowest it has been since 1980. This week alone, the currency pair has dropped by nearly 8%. The Australian dollar, on the other hand, has fallen to a 20-year low and is trading in the red with a 0.6% drop from March 19.
Can the Cryptocurrency Market Sustain this Rally?
Despite the recent rise, BTC and other major cryptocurrencies are still trading well below the price level that they began with at the start of the year.
Everything remains speculative at this point. The rest of the financial markets are still struggling amid the coronavirus pandemic. Governments all over the world are contemplating even handing out cash as a relief package to its citizens, which means the next few weeks will be interesting indeed. From a technical standpoint, however, fear continues to dominate the crypto markets.
In any case, it’s important to remain vigilant as volatility continues to plague the financial market. Cash remains the go-to safe-haven asset during these times, but that may change over time if market sentiment shifts in the coming days.