BTC is undeniably in a bull market as evidenced by its parabolic rally since the start of the year. However, even bull markets can encounter spells of short-term downtrends while the higher timeframe trend heads up.
This scenario has played out in the BTC market of late, with the price action turning bearish over the past week resulting in a sharp pullback. During a recent selloff, BTC shaved $13K off its price from its recent peak as the bears regained the upper hand over bitcoin’s short term trend.
Friday’s daily close left behind an extremely bearish candle that pointed to a further correction before the BTC uptick restarts.The Average Directional Index seen on the chart below confirms that bears have reclaimed control over the BTC price for the first time since October of last year.
Since that time, FOMO has spun out of control, propelling the BTCUSD pair higher until it set fresh highs this month.
The Average Directional Index confirms bears have taken over daily timeframes | Source TradingView
The recent pullback may be just what the market needs to reignite buying interest, confirm resistance as support, and push the BTC price higher.
Ether Posts Massive Surge After Sharp Pullback
The ETH price often closely tracks the world’s top cryptocurrency’s movements, and it did so again during the latest bitcoin sell-off. The ETHUSD pair retraced about 30% as BTC started reversing its uptrend, dipping from recent highs of $1,450 to hit lows of $1,040.
Since then, bulls have responded well to the selling pressure around it’s all-time highs that turned into capitulation on Friday. Over the last 2-3 sessions, the ETH price has posted a strong v-shaped recovery that has seen it gain over 20% from its recent lows.
As of this article’s writing, ETH is trading at $1,243, marking a decent recovery that has seen the top altcoin continue to outperform bitcoin.
ETHUSD Chart By TradingView
The strong recovery suggests that investors are keener on buying any dips. Analyst Livercoin projects that the ETH rebound against its BTC pair may point to a “proper rally” for the second-largest cryptocurrency in the coming days.
ETH Price Poised for an Uptick Despite Capitulatory Selloff
Ether has erased most gains that came about as the bulls pushed prices to highs of $1,450. The intense selling pressure around that peak has yet to alleviate, leading to ETH flashing some signs of weakness despite its attempt to recover.
That said, analyst TeddyClep remains optimistic that Ethereum is still looking well poised for an uptrend from a macro perspective.
“Ethereum: it is still by far the best-looking altcoin in terms of price structure. – Above the cloud – Just tested all-time high – Rejection but still above the previous low,” he tweeted.