(Kitco News) - Conditions in the crypto market saw a slight improvement in trading on Tuesday as Bitcoin (BTC) bulls managed to lift the top crypto back above support at $16,000 as traders came off the sidelines following yesterday’s price rout.
Despite several large, unresolved issues including the possible bankruptcy of Genesis Trading and the record discount on shares of the Grayscale Bitcoin Trust (GBTC), the wider crypto market saw green on the day, with many sensing the bottom may be near.
Data from TradingView shows that after hovering near support at $15,735 throughout the morning session, a midday spike in demand for BTC pushed it to a daily high of $16,298 before entering consolidation near support at $16,130.
There is still more work to be done by Bitcoin bulls if they hope to regain control, however, as Kitco senior technical analyst Jim Wyckoff noted that “The bears have gained fresh power after prices Monday fell to a two-year low.”
As for now, “Bears have the firm overall near-term technical advantage to suggest more sideways-to-lower price action in the near term,” Wyckoff concluded.
Watch out for a bull trap
A survey of crypto Twitter shows that the more experienced traders are still expecting more downside ahead as this is but a bull trap bounce to entangle overeager traders.
Insight into what levels to watch in the case of a breakout higher or downward continuation was provided by Michaël van de Poppe, CEO and Founder of Eight Global, who provided the following chart highlighting the significant resistance found at $16,600.
And for those who are wondering when the pain may come to an end, independent market analyst Rekt Capital pointed to the collapse of FTX as a sign that the bear market bottom may be near.
“In previous BTC cycles, it was Bitmex, earlier it was Mt Gox. Now FTX. It’s a pattern,” Rekt Capital said. “Exchange contagion has become a historical tendency that occurs close to the absolute BTC Bear Market bottom. Survive the capitulation & you will flourish in the Bull Market.”
Altcoin prices rebound sharply
On the whole, it was a positive day in the altcoin market as several coins saw their prices exhibit a strong rebound to put them in positive territory on the weekly chart.
The most notable performers on the day include a 26.6% gain for Curve DAO Token (CRV), an 18.25% increase for Celo (CELO), and a 13.34% spike for Litecoin (LTC).
The overall cryptocurrency market cap now stands at $801 billion, and Bitcoin’s dominance rate is 38.6%.
