The week begins with a significant rebound across the cryptocurrency market, reflected in a global market capitalization gain of more than 10%. Bitcoin has recovered over 8% after another large dip. Other altcoins have rallied up to 30% in the last 24 hours, making this one of the most convincing recoveries seen since the bear season.
Global Market Capitalization: $100 Billion Acts as Support
Total or global market capitalization is the sum of the market caps of all digital currencies in the market. It gives investors a sense of the industry’s size and helps evaluate trends. As we anticipated, the $100 billion level responded as a psychological support. Today we see global capitalization recover roughly 10% from its annual lows in that area. Traders are now watching closely to determine whether this rebound will prove sustainable.
At the time of writing, total capitalization sits above $110 billion, and this strength is reflected across individual cryptocurrency prices. If this level holds and the rally continues, the next major target would be around $125 billion.
Bitcoin: Rebound After Breaking a Descending Wedge?
Bitcoin appears to have mounted a convincing rebound, breaking out of a descending wedge pattern that often signals bullish potential. Bulls rushed to buy Bitcoin, sending the leading cryptocurrency up more than 8% in the last 24 hours after it retested annual lows last week. While BTC may have completed a wedge breakout, there is still more to prove: Bitcoin must retest the breakout levels to confirm continuation of the upward move.
Even if the retest succeeds, the price will face significant resistance levels that could stall or reverse the rally. There is potential for trading opportunities, but traders should act with caution. Another technical element worth noting is the RSI. The relative strength index suggests the recent decline was inconsistent, showing a bullish divergence on the 4-hour chart. However, the RSI is approaching oversold territory, so a short-term pullback remains possible.
Altcoins: Which Ones Led the Rally?
Looking at the market after the rebound — which has now stabilized — several alternative cryptocurrencies outperformed the rest. Bulls reacted strongly to buying pressure on EOS, pushing it up into CoinMarketCap’s No. 4 position, overtaking rival Stellar and gaining more than 20% in the past 24 hours. QTUM also rallied in similar proportions, rising by over 20%.
Meanwhile, most top-10 cryptocurrencies gained more than 5%, including Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), Litecoin (LTC) and Bitcoin Cash (BCH). Below is the Coin360 market balance snapshot:
The sustainability of this rebound will depend on many factors. The market remains sensitive to news about adoption, regulation and other developments. In the coming hours, pre-breakout levels are likely to be retested, which will be a crucial test—especially for BTC. What do you think of this rebound? Has it brought hope back to the market?