Bitcoin’s strong recovery puts cryptos in the bullish path

After 24 hours of continuous descents, Bitcoin(+4.88%) had recovered the whole drop in a single bullish candlestick that recovered all the losses and made a new high. The upward movements were relatively similar on major cryptos and altcoins, with BCH (+3.69%), ETH (+3.45%), and EOS (+3.02%) being the closest to the BTC movement. GRS (-19.56%), after its galactic ascent of over seven thousand percent yesterday, there is no surprise that it is retracing part of the acquired gains, being the worst performer of the top-20 coins. HEDG (+7.22%) is leading the profits of the most capitalized Ethereum-based tokens, followed by LINK (+3.05%) and BAT(+2.86%). Today's notable mention should be awarded to ECOREAL, which is up +863 percent.

Fig 1 - 24H Crypto Sector Heat Map

The market cap of the crypto sector went up 2.83 percent, and now its value is $185.111 billion. The 24-hour traded volume also grew 28 percent and was $39.132 billion. Finally, the dominance of Bitcoin rose to 65.46 percent, almost an entire point.

Fig 2 - 24H Crypto Market Cap and Traded Volume

Hot News

Bill Gates warns that "there is no middle ground" when fighting the coronavirus pandemic. "Shut down everywhere," said in an op-ed in the Washington Post on Wednesday, urging the U.S. Government to force a national shutdown.He explained that the fact that beaches or restaurants are open in some states is a recipe for disaster, " because people can travel freely across state lines, so can the virus," said.

The DJIA (-4.44%) and the S&P 500 (-4.41%) started the second quarter with their worst start in history with declines of over 4.4 percent, as investors are considering the prospect of a very long and painful period for the economy due to movement restrictions and the closure of businesses.  Trading legend Jim Rogers, the co-founder with George Soros of the legendary Quantum Fund, says that the next two years will be the worst bear market in his lifetime.

Lightning Labs published the draft specifications of LSAT- Lightning Service Authentication Token. The LSAT protocol standard is aimed to redefine online payments through the use of an obscure HTTP status code, and the use of cryptographic credentials, then eliminating the need for credit cards, user names, and passwords.

The New York judge P.Kevin Castel says Telegram can't distribute Grams in the US but neither abroad. The Judge stated that Telegram's claims that they would implement safeguards to stop U.S-based investors from being capable of purchasing Grams were not credible as "the TON Blockchain was designed and intended to grant anonymity." The TON community, though, stated that despite the court's ruling, the TON network might launch, as "TON is a decentralized open-source solution."

Technical Analysis – Bitcoin

Chart 1 - Bitcoin 4H Chart

Bitcoin made a large bullish candlestick that engulfed the previous eight bearish candles, broke through the $6,550 level, and made a new high near $6,800. The price is now above the +1SD Bollinger line, and its MACD turned to bullish too. Finally, this movement has broken the horizontal wedge to the upside. This is what we were looking for in terms of a directional clue. Right now, the price is consolidating its gains, but this strong move will set the pace for today's and tomorrow's movement on BTC and the crypto sector.

Ethereum

Chart 2 - Ethereum 4H Chart

Ethereum also made an engulfing candlestick that pierced through the $135 resistance level and the upper trendline of the horizontal wedge in which it was moving, creating, also, a new higher high.  ETH's price moves now above the +1SD line and seems headed to test its next resistance level of $142.

Ripple

Chart 3 - Ripple 4H Chart

Ripple has made a kind of morning star formation whose bullish candle pierced through the second-previous bearish candle's high and also crossed the upper descending trendline of the triangular structure slightly. The next current candle continues its upward move above the +1SD line and with a MACD making a bullish transition.  Although XRP's move is not as convincing as on BTC and ETH, we estimate that XRP has a slightly upward bias, that may be helped by the overall market mood.

Its next resistance level is $0.18, but the current market action could drive it up to $0.19.

Try Secure Leveraged Trading with EagleFX!