The crypto market is recovering slightly after yesterday's rally, with the fear and greed index gravitating towards neutral ground once again.
Solana is a standout performer among the top 10, while Dogecoin continues to struggle around $0.1
Bitcoin is attempting to recover after Monday's slump, with a break above $60,300 being crucial for the bulls.
Ethereum is showing similar recovery patterns to Bitcoin, with resistance levels at $2,500 and $2,815.
DogWifHat and Solana are the most promising altcoins of the top 100, with possible double-digit gains soon.
The crypto market has moved to the upside again today, even though slower than yesterday's rally.
Today, we have a 1.3% increase in the total market cap and a slightly more normalized fear and greed index that now sits at a neutral score of 43%—all the way up from yesterday's 37% fear reading.
The crypto fear and greed index
According to the crypto heatmap, there is also a plentiful supply of green on the market, which shows great health.
Solana, for example, is up by an impressive 7.5%, with Bitcoin at 2.13% and Avalanche at 3.41%.
However, Dogecoin remains under its blues and is still struggling to break above $0.1.
The crypto market’s heatmap
In terms of liquidations, the figures have calmed down severely in the last 24 hours.
Instead of the $500 million we had from yesterday and the $1.1 billion we saw the day before, the figures now sit at around $178 million—suggesting much lower market volatility amid the cool-off.
The crypto liquidation heatmap
The liquidation figures are almost equal even between the bulls and the bears, with the former class of traders losing slightly more than the latter.
While the bulls have lost $97 million, the bears have lost around $80 million, indicating a slightly bearish equality across the market.
Let’s see what all of the above means.
Somehow, even despite the ongoing market decline, Bitcoin appears to be maintaining its position within the descending channel shown below:
Bitcoin’s price performance
After the bulls prevented a break and close below this formation’s lower trendline during Monday’s crash, we are now seeing a recovery of sorts, with Bitcoin now trading at $56,900 at the time of writing.
The cryptocurrency is also up by around 16% from its slump to $49,000.
There is still not enough evidence to tell whether this is a valid Bitcoin recovery. However, the major test would be a break and close above the $60,300 zone with a daily candlestick.
According to the charts, Ethereum is performing in almost the same way as Bitcoin.
To start with, the cryptocurrency is up by around 18% from its Monday slump to $2,111.
Ethereum recovering from the slump
This makes it slightly better than Bitcoin in terms of recovery. However, Ethereum still suffers from a lack of volatility in the short term and appears to be struggling at around $2,500.
If we see a break above $2,500, the next price target should be $2,815. These are the major price levels to watch out for for short-term positioning.
However, if we see a rejection from either of these price levels, the likelihood of another drop in Ethereum remains valid.
It appears that DogWifHat is back with a vengeance.
The memecoin is by far the best performer among the top 100 cryptos on the market, with an intra-day price increase of 20%.
DogWifHat’s performance
This growth has allowed WIF to break into the ascending trendline it lost over the last weekend, and things seem wildly bright from here.
If we do see a close above this trendline (a break above $1.5), Monday's crash would constitute a "false breakdown" scenario, allowing WIF to continue further upwards towards the $2.5 price level.
As shown by the charts, Solana trades within a megaphone or a broadening wedge pattern.
Solana’s price action
This pattern is special because it can be both a continuation and a reversal formation, depending on where a breakout occurs.
As it stands, Solana has yet to break out from either the upper or lower trendline.
What we can say about the cryptocurrency, however, is that it has successfully rebounded off the lower trendline of this formation and is aiming for a retest of the upper.
The major price levels/resistances to keep an eye out for include the $152, $176, $189, and, of course, the $193 points.
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.