The bears have held a strong grip on the market for over 8 weeks now as the prices of the majority of the cryptos trade within lower consolidation levels. Being a little diverse, the descending move was not completely triggered by the star crypto, Bitcoin. The regulatory crackdown shook the entire crypto space in the past few days, compelling the BTC price to drop close to $25,300.
Besides, altcoins like Polygon, Solana, and Cardano, witnessed a massive drop as they were delisted from a US-based exchange, and the impact of this was witnessed over the other altcoins as well. The downtrend that began in mid of April continues to prevail, testing the lower support multiple times. Therefore, the bulls may now require extra efforts to break the upswing,
Despite multiple reasons to be bearish on the crypto markets in the coming days, a couple of pointers suggest a bullish rebound. As per the data from Santiment, the traders appear to have settled with the FUD that circulated after the SEC sued Binance and Coinbase. The sentiments have normalized as some of the cryptos have jumped back to their ‘pre-crash’ levels again.
However, the fact remains that the SEC continues to frame charges against Binance and Coinbase. Secondly, the global crypto market cap continues to sustain above $1 trillion, even though the markets continue to display the possibility of fresh bearish action. The levels are currently testing one of the important support zones that may either trigger a significant rebound or drag the market cap towards the lower trend line.
Considering the historical market cap chart, the trend remains bullish and above one of the major support zones. These zones may offer the base needed for the market cap to hold and trigger a rebound. Although the possibility of rejection looms, the RSI is trying for a bullish divergence, and the 200-D MA & EMA are offering a strong base. Hence, the possibility of a bearish reversal reduces, but the levels should rise above the 100-D EMA at $1.17 trillion
Collectively, the crypto markets in the short term may remain under the bearish influence, but the current weekly close above the 200-D MA levels at $1.065 trillion is mandatory to keep up the bullish trend.
