Bitcoin and the aggregated crypto market have been caught within a bout of extreme turbulence throughout the past several days and weeks, with the meltdown in the traditional markets acting as a catalyst for intense bearishness across all risk-on assets.
In the near-term, it is highly probable that Bitcoin will continue guiding the aggregated crypto market, with most major altcoins closely tracking its price action throughout the past few days and weeks.
Although the markets are currently in the process of rebounding, it is important to note that one technical indicator is currently showing that Bitcoin could soon see a significant near-term retrace that takes the crypto market down with it.
Crypto Market Begins Recovering Following Massive Downturn
The crypto market saw some unprecedented bearishness a few days ago, with Bitcoin and most other altcoins posting some of their largest single day losses ever as BTC plummeted from $8,000 to lows of $3,500.
Many altcoins saw their 2020 gains obliterated by this movement, with Ethereum plummeting over 50% while XRP and many other altcoins dropped to fresh multi-year lows.
The crypto market has been able to rebound from these lows, however, with Bitcoin surging up towards $6,000 in the minutes and hours after breaking into the $3,000 region. This subsequently led most major altcoins to also rally, with this momentum extending into today.
At the time of writing, Ethereum is trading up just under 4% at its current price of $128, while XRP, Bitcoin Cash, and Litecoin have all climbed just over 2%.
Today’s crypto market rebound certainly isn’t enough to invalidate the bearishness caused by the recent downturn, although it does seem to elucidate that bulls are still alive and kicking despite the recent meltdown.
This Indicator May Spell Trouble for Bitcoin and Altcoins
Because Bitcoin is firmly guiding the entire crypto market at the moment, where it trends in the days ahead will be critical for determining the state of the altcoin market.
Recently, Cold Blooded Shiller – a prominent cryptocurrency analyst on Twitter – explained that the reversion bands from an indicator created by Cuban, another well-respected trader, shows that BTC could soon dip towards somewhere between $2,200 and $4,700 in the near-term.
“Cuban’s Reversion bands showing 4,700 – 2200 for BTC with Renko,” he explained while pointing to the chart seen below.
Cuban's Reversion bands showing 4,700 – 2200 for $BTC with Renko. pic.twitter.com/qhixUlvBzm
— Cold Blooded Shiller (@ColdBloodShill) March 14, 2020
How Bitcoin trends in the days and weeks ahead should determine whether or not major altcoins are able to extend their current momentum, or if they will soon sink further.
Featured image from Shutterstock.