The Crypto market has recovered slightly after yesterday's sharp decline.
Bitcoin is expected to consolidate between $62,400 and $58,400 for now, with a possible drop if the bulls are unable to take action.
Ethereum is showing signs of a rebound after holding above $3,366.
WIF is leading the top 100 altcoin gains with a 23% increase over the last day.
FET's price has also jumped 22% and could even continue its uptrend.
The market's volatility will likely continue, and investors should consider using proper risk management.
Monitor Bitcoin's $56,500 low and Ethereum's $3,366 support for future direction.
Watch DogWifHat's $1.96 resistance and Fetch.ai's possible move towards $3.114.
The crypto market slid downwards harshly yesterday, with Bitcoin hitting a low of $58,400.
Since then, most of the prices on the market have recovered slightly, with Bitcoin back above $61,000 and the total crypto market cap correcting itself to a 24-hour decline of a mere 0.3%.
The crypto heatmap shows that while Bitcoin’s dominance has declined severely over the last day, the altcoin market is showing considerable signs of strength, as shown below:
The crypto market’s heatmap
According to Coinglass data, the market volatility has caused a spike in the number of liquidations across several cryptocurrencies.
As shown below, most of the market liquidations have come from Bitcoin alone, with the cryptocurrency’s bulls suffering around $197 million in losses.
The crypto market’s liquidation heatmap
Over the last 24 hours, $320 million has been taken from leveraged traders across the market, with the bulls suffering the lion's share of the losses, around $237 million.
On the other hand, the Bears have lost only $82.51 million.
In sum, the market is transitioning between bullish and bearish hands.
This means that volatility spikes are likely to happen at any point, and traders might be caught unawares without proper risk management strategies.
Looking at the Bitcoin charts, we can already see yesterday's candlestick and its long lower wick.
The long lower wick from yesterday's candlestick indicates that the cryptocurrency's bulls swung into action, preventing further declines and pushing Bitcoin into the greens.
Bitcoin’s price action
Today’s candlestick is already turning out with a nice bit of green, as shown above.
However, does this mean that Bitcoin is now safe and bullish?
Not necessarily.
Bitcoin is expected to consolidate between $62,400 and $58,400 for a while—we might even see a dip or two towards the $56,500 low from 1 May.
However, at the end of this consolidation, Bitcoin is bound to pick a side and either trend upwards to the $70,000 zone or downwards to fresh new lows.
Ethereum declined alongside Bitcoin yesterday, hitting a low of $3,240, as shown in the chart below:
Ethereum’s price action
However, the bulls managed to prevent a daily candle close below the $3,366 price level, and Ethereum is showing signs of a rebound from here.
This is not to say that the cryptocurrency cannot decline further from this price level.
Investors should watch what happens around $3,366 because this price level determines what happens next with the king of altcoins.
According to data from CoinMarketCap, DogWifHat (WIF) is leading the rest of the altcoin market at the time of writing, with a 23% daily price increase.
As shown below, the cryptocurrency rebounded strongly off the $1.47 price level and is now reaching higher highs.
DogWifHat in the charts
Above, we can see that a significantly strong resistance is around $1.96, and WIF might have some trouble breaking through to the upside.
Investors must watch this price level to determine what happens next with this young and bourgeoning memecoin.
Alongside WIF, Fetch.ai (FET) is also leading the top 100 cryptocurrencies with a daily price increase of around 22%, according to data from CoinMarketCap.
FET’s price action
The charts show that the cryptocurrency has been strongly bullish for weeks now.
On 19 June, we saw a fresh rebound from $1.1 and a retest and consolidation below the $1.623 price level, as shown below.
This time around, amid the marketwide bearishness, we can see a break and close above this $1.623 price resistance, promising further upside on FET.
We might be in for some consolidation from here; ultimately, we will see the cryptocurrency continue, leading it to $3.114 or even 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.