Bitcoin Witnessing the Weakest Recovery?

The crypto market is back on the rise after the unexpected crash that happened earlier this week. Although the current rise could be a retracement to go south again, a few cryptos have already proved that wrong.

As the markets were trending higher and higher in the past few weeks, the crash seems to have brought some bearish sentiment back in the market. The current fall can be a cause of concern in the worst-case scenario because the dip has put the prices inside the long-held resistance. Visually, the recent push to the upside has been devoured, leading to a wick on the top.

Of course, there are a few cryptos that have reacted in reverse to the rest. For example, Solana crypto has recovered from the flash crash such that it has gone on to make another all-time high. Apart from SOL token, there were a few others as well that had a V-shape recovery.

Market Price Update

The recent dive to the south in the cryptocurrency market has taken the prices back to the support levels. The reaction coming from these areas has been rather interesting, as the cryptos are recovering in their own trajectories.

The Bitcoin market that was gradually heading higher and higher from $47,000 plummeted instantly after touching the $53,000 mark. Within a matter of four hours or so, the prices dropped to as low as $43,000 – a drawdown of almost 19% from the recent highs. However, the prices did recover a little with the same speed with which it had crashed. But as the price reached the former support at $47,000, the prices reversed back to the downside.

Currently, BTC crypto is hovering between $47,400 as the immediate resistance and $45,000 as the immediate support. The range also seems to be moving fast, as there is momentum from both parties. Also, the buying and selling strength looks quite the same as there are no higher lows or lower highs formed as of yet.

Now, when the price action of Bitcoin is compared with the top-performing crypto projects, BTC turned out to be the most laggard one. As mentioned earlier, few cryptos are making higher high sequences and recovering at an impressive pace amid the crash. But Bitcoin is showing the higher high sets, nor is it showing signs of V-shape recovery.

Altcoins Shine All the Way

It is often observed that altcoins outperform Bitcoin despite having a slow start to their uptrend. Things have been no different in the current bull run as well. Although BTC started off with the uptrend, altcoins happened to take over within few weeks, clearly indicating the buyers’ interest in altcoins.

That being said, the cryptos that fall under the umbrella that is performing better in the world’s largest cryptocurrency are small. Only a handful of the crypto assets have an exceptional trajectory of the upside.

For instance, tokens including Solana (SOL), Terra (LUNA), Algorand (ALGO) have all had an instant V-shape recovery as well as a new ATH. Solana and Terra were always in the news for their extremely bullish movements this altcoins season, but ALGO, too, seems to have entered the ATH club.

Price Analysis Uncovered

Bitcoin

The Bitcoin market plummeted to almost $10,000 in mere two 4-hour candles. But after touching the support that existed at $43,000, the price reacted off quite strong, which took the price back to $49,000.

As the sellers showed strength yet again, the price took a dip. However, the market did find support at a much higher level than the previous low, at $46,000. After establishing these support and resistance levels, the BTC market went into consolidation. But unexpectedly, the range got narrower despite the volatility in other cryptos.

Currently, the price has dipped to the support quite aggressively. If the buyers react to it like the previous time, we can see the range continue longer; else, the price could head lower to meet its next area of demand.

Algorand

The price action has been interesting in Algorand lately. Initially, as the entire market was pumping, ALGO token never potentially made a move to the north. It always found a resistance that brought the market down despite the momentum being on the bulls’ side.

In the first week of September 2021, ALGO crypto finally breached above the supply level at $1.1 and put an end to the overextended consolidation that lasted for over a quarter.

The buyers had a smooth run to the upside until the seller took it down instantly at $1.5. The flash drawdown brought the price of ALGO to as low as $1. Reacting to this odd sell-off, the bulls gobbled up the discount in no time, which led to a V-shape recovery. If the price chart is switched to the higher timeframe, the recovery is simply a wick on the bottom. Surprisingly, the buyers came in so strong that the price rallied +50% in a matter of 24 hours. In fact, the rally brought an ATH to Algorand.

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