The crypto market is experiencing a recovery with a 3.8% increase in total market cap to $2.23 trillion.
Short sellers faced the brunt of liquidations yesterday, totalling $71 million compared to $35 million for bulls.
Bitcoin is attempting a bounce from the support line of a descending wedge but is at risk of decline if it fails to break the resistance at $67,700.
Ethereum bulls are aiming for a breakout above $3,100, with the RSI suggesting a potential bullish crossover.
Arweave is close to a breakout above the $38 resistance, while PEPE is attempting to break a descending trendline for a potential rally.
The crypto market appears to be making a massive attempt to recover over the last day, considering the 3.8% increase in total market cap, and the rise from $2.18 trillion to around $2.23 trillion today.
According to the crypto heatmap, the market has turned completely green, as shown below:
The crypto heatmap
According to the liquidation heatmap, the bears appear to have been betting on further decline and have been the worst liquidated party in yesterday's leverage purge.
The crypt market’s heatmap
So far, we have a relatively mild $106.6 million in liquidations, with the bears taking the worst hit with $71 million worth of liquidations, compared to the bullish $35 million.
Overall, we can conclude that today, the bulls have a firm hand on the steering wheel, but are not completely safe from bearish influence yet.
Bitcoin's sequence of decline and recovery this week has turned out to be a descending wedge on the flagship cryptocurrency, as shown below:
Descending channel on Bitcoin
As we can see, the ongoing recovery of the cryptocurrency is an attempt to rebound from the lower support of this formation, and possibly make a new lower high before the next major move.
This formation on Bitcoin also means that over the short term, the cryptocurrency is bearish.
We should see Bitcoin continue further up and retest the top of the formation at around $67,700. However, if a breakout does not occur from here, a devastating decline is set to occur again, until the bulls take lasting action against the bears.
According to the charts, the bulls rejected the bearish influence from the bears very strongly at around 1 May, saving Ethereum from a plunge below $2.817.
We can confirm this with the extra long lower wick on the daily candlestick for this date.
Falling wedge on Ethereum
This means that the bulls are pushing upwards, and should be aiming for an Ethereum break above the $3,100 very soon.
Ethereum currently trades at around $2,996, and the RSI on the daily chart shows that we might be seeing an incoming bullish crossover.
The first step towards lasting bullish control would be a break and close above $3,100.
According to the charts, Arweave is making new higher highs as shown below, and is even aiming for a break above the $38 resistance:
Arweave in the charts
As it stands, the cryptocurrency is very close to a break above $38 and currently trades at around $34.5.
Moreover, the RSI on the daily chart shows that the cryptocurrency is trending towards bullish territory, increasing the odds that this break above happens.
Investors can wait for a break above this $38 resistance before making any trades.
As shown by the chart below, PEPE currently trades underneath a descending trendline and has been held under since early February this year.
PEPE’s price action
The chart above shows that PEPE is now attempting a break above this trendline, and needs a confirmatory close above, to cement its standing.
If we see this break and close above the trendline at around $0.00000819, we can expect PEPE to continue further up.
This rally will help PEPE to attempt a retest of the $0.00001084 support, before making a new all-time high.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it 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.