The crypto market has remained relatively stable over the past 24 hours.
Bitcoin and Ethereum are showing signs of recovery and are trading at bullish rises.
ImmutableX (IMX) appears ready to break out from a descending channel.
Optimism has rebounded from a strong support level and should rally by around 50% soon.
Through it all, crypto investors should approach the market with caution.
The crypto market has remained relatively unchanged over the last 24 hours, with Bitcoin still underneath the $60,00 zone and Ethereum trading at around $2,500.
The crypto market’s heatmap
The crypto heatmap shows a healthy amount of green across the market, though, with most cryptocurrencies making small but bullish gains within the last day.
The crypto fear and greed index has also remained relatively unchanged, with a slightly fearful 46/100 neutral reading as illustrated:
The crypto fear and greed index
So far, some of the market's best gainers are Dogs, ImmutableX, THORChain, and Optimism, all of which have experienced between 4% and 22% price increases over the last 24 hours.
On the flip side, some of the top losers include Bittensor, Stacks, Maker, Polygon, and Arweave, which have experienced an average 4% decline in the last 24 hours.
The crypto liquidation heatmap
The liquidation figure for the last 24 hours shows a relatively strong but manageable $160 million compared to yesterday's +$300 million.
The bulls lost as much as the bears as expected, with around $90 million, compared to the bearish $67.4 million.
With this being said, the market's outlook shows that the bulls and bears are at equilibrium, but the bears hold more of an upper hand over the market today.
With this in mind, investors should again approach with caution.
According to the charts, the Bitcoin bulls have managed to prevent the cryptocurrency from declining further by around $57,500.
As shown in the chart snapshot below, Bitcoin is already working on a rebound move from its lows and is now trading at around $59,700.
Bitcoin’s price action
This rebound, while encouraging, still has a long way to go.
For Bitcoin to be regarded as fully back in action, we must see a break above its previous local high of around $65,000 for a new higher high.
This means that Bitcoin must first cross the $60,000 hurdle and then the $62,000-$63,000 range before breaking above $65,000.
As shown by the charts, Ethereum is flashing the same recovery signals as Bitcoin and is now rebounding off the $2,400 price level with a green candlestick from yesterday and one from today.
Ethereum’s price action
According to the chart, the cryptocurrency still needs to break above the $2,800 zone, from which it was rejected last week.
However, its price action appears encouraging, and we just might see this retest and breakout occur soon.
According to the charts, ImmutableX is trading within a descending channel, which is a bearish formation.
However, it has rebounded off this formation's lower trendline (around $0.9) and even performed a small-scale breakout and retest of the $1.3 resistance.
Price action on Immutable X
With this being said, the cryptocurrency is likely to continue further upwards and hit the $1.7 resistance.
If the bulls are able to initiate a break above this price level, then a breakout of the bearish channel as a whole becomes even more possible.
In essence, ImmutableX appears to be gearing up for a breakout and massive rally.
Optimism appears to have hit a very strong support around the $1.1617 price level during the 5 August Black Monday crash.
The cryptocurrency, after printing a false breakdown, is now rallying to the upside and appears likely to continue further upwards from here:
Optimism’s break above trendline
What is also interesting is the cryptocurrency's breakout pattern, retest, and likelihood of further bullish action.
The Fibonacci retracement tool shows a price target of around $2.176, at least, for Optimism—which would be a steady 50% price increase for the cryptocurrency, assuming prices go no higher.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information but will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.