The wider altcoin market, led by Ethereum (ETH), has signaled a possible momentum shift following the recent Bitcoin (BTC) price pump towards $87.5k. The total crypto market cap rallied close to $3 trillion on Wednesday, March 26, during the mid-European session,
The crypto market has attempted to mirror Gold price action in the recent past ahead of the April 2 sweeping new reciprocal tariffs from the United States, in addition to tariffs on some Canadian and Mexican goods.
Is the Crypto Market Ready for Recovery
The ongoing crypto mild recovery has been influenced by several factors including renewed interest from whale investors and macroeconomic conditions. For instance, the U.S. spot Bitcoin ETFs have already ended a five-week losing streak following last week’s $744 million cash inflow and $111 million cash inflow since the beginning of this week.
The fear of further Bitcoin correction has significantly reduced, as shown by the BTC fear and greed index that hovered around 47 percent at the time of this writing. However, Santiment has cautioned crypto investors of potential selloff amid rising bullish optimism. Moreover, on-chain data analysis by Santiment shows an increased bullish optimism.
“Remember that cryptocurrency markets have ALWAYS historically moved in the opposite direction of the crowd’s expectations. When you see your timeline filled with “to the moon” or “Lambo time”, be cautious about upcoming prices. When you see “crypto is dead” or “bitcoin is a scam”, this should be music to your ears,” Santiment noted.
What Next?
The wider altcoin market, which has depicted a positive correlation with Bitcoin, is likely to follow BTC price action. From a technical analysis standpoint, Bitcoin price is likely to continue in a rising mode towards the resistance range between $89k and $91k.
A consistent close above $91k will yield a rally towards $100k and beyond, which will positively impact the wider altcoin market. However, a rejection at the next liquified range will result in a renewed correction towards $77k.
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FAQs
The crypto market is rising due to Bitcoin’s price pump, strong ETF inflows, reduced fear of correction, and bullish sentiment among investors.
If BTC breaks above $91K, it could rally toward $100K. However, rejection at key resistance may trigger a correction to $77K.
Yes, Bitcoin ETFs ended a five-week losing streak, with $744M inflows last week, boosting market confidence and driving BTC price gains.
