Bitcoin’s resurgence is propelling cryptocurrency to new heights

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Bitcoin has stabilized and is enjoying a recovery after wicking down to around $18,000 over the weekend. It has reclaimed the primary support at approximately $19,500. At the time of writing, the most valuable cryptocurrency was $21,300.

Bitcoin looks to have gathered itself after a two-week drop from about $32k, which featured a record-breaking 8 red daily candles in a row and is presently bouncing.

With a lot of pessimistic sentiment remaining in the market and more possible liquidations on the way, it’s unlikely that the crypto market will bounce back with much enthusiasm.

One probable objective is a downward sloping trendline that began on May 11. By the time the bitcoin price may hit it again, it’ll be about $25,000. If there is no rejection here, bitcoin may return to the prior significant support range of $29,000 to $30,000, which has now turned into resistance.

The altcoins have come back to life due to Bitcoin’s slight rebound, albeit fleetingly. Ethereum has surged over a lengthy upward sloping trendline that began way back in early March of 2020, bouncing 30 percent in the previous three days or so.

The current price of $1,150 also corresponds to a retake of the 78.6 fibonacci level. As a result, there is a lot of support for ethereum, which is a very basic level to keep. To the upside, $1,400 is the next goal, with $1,700 above.

LINK is one of the cryptocurrencies that has had a significant reaction. Since its low, the number one oracle play has climbed more than 40%, and it’s presently trading near the $7.35 barrier level. If it consolidates above this level, it might increase to $9.60, which is the next objective.

MATIC, ethereum’s second layer, has also recovered roughly 40% of its value. It has already reached a resistance level established in April of 2021.

If it consolidates above, the 78.6 fib beckons from above at $0.63, representing an almost threefold rise.

Zilliqa (ZIL) dropped below a support level in June 2020 but has since rebounded significantly, gaining more than 50%. It has since lost around 10% of its value. However, a return to its original 78.6 fib level would result in an overall increase of 85 percent.

Nonetheless, all eyes are on bitcoin. If the king of cryptocurrencies continues to rise sharply, some fundamentally sound cryptocurrencies may be able to capitalize and achieve even greater gains.

However, in the medium term – at least for the remainder of this year – it’s investor beware. Many analysts believe bitcoin will continue to fall, and given the bleak economic outlook, they may be correct.

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