Market Rises to Key Level in Reversal

As if to immediately prove me wrong, late last night the cryptocurrency market began to build up some upward momentum off the bottom of yesterday's sharp sell off. Alt coins such as Ethereum & Chainlink were down massively at certain points with Ethereum hitting a low around $1700 USD and Chainlink touching $15 USD.  Since then, many cryptocurrencies have actually rallied hard off the bottom up as much as 40% + as of late this morning.

Potential Reversal?

Bitcoin managed to rise up and test the top of the 200 daily moving average price channel on the 30 min chart as of this morning.  Since then, it has back tested that level and is now appearing to use it as support for a larger move up.

Visible in the graphic above is Bitcoin rising above this price channel and successfully testing it as support.  Today, based on the current trajectory of Bitcoin, the next stop would be to test the hourly 200 MA that should be just under $40,000 USD.  This is only possible should Bitcoin remain above the level shown on the 30 minute chart.

Alt Coins

Many alt coins are currently showing similar momentum to Bitcoin above.  Upward pressure is pushing much of the cryptocurrency market higher.  Ethereum is showing strength that is certainly helping much of the alt coin market.

Rocketing off the lows, this is the first time Ethereum has broken above the 200 daily moving average trend line since it fell below $4000 USD back on May 15th before plummeting to under $2000 USD.  Should this level hold, Ethereum looks poised to test the 1 hr 200 MA next.  Longing from here is a moderately safe bet should the 200 daily MA hold up as support over the short to medium term.  Other notable alt coins that are currently also testing this level are Chainlink, Algorand, and Cardano.

While promising, do not give up existing leverage just yet should you be limited in your ammo to support your current holdings.  A false breakout here will definitely see prices fall back below the 200 day MA and a better buying opportunity for long term upside will present itself down the road.

This is not financial advice as I do not know what I'm doing.  Do your own due diligence before choosing to invest in anything, including cryptocurrencies after a massive 50%+ correction ;)