The cryptocurrency market is finally showing signs of recovery after witnessing its worst downside corrections since March of 2020. During the selloff that struck at the start of this week, almost all cryptocurrencies shed massive gains as traders scrambled to close their positions.
Among the worst affected was bitcoin, which plunged 22% from its lifetime high levels of $58,400 set over the past weekend. ETH, the topmost crypto after BTC, also fell from highs above $2K to lows of $1,356.
Top analysts explained the intense retracement that saw the crypto market lose about $200 billion in 24 hours as a healthy reset of the market that would shake off weak bulls.
Crypto analyst Michael van de Poppe predicted that the correction wasn’t a bear market, but rather an organic market cycle reset that would take steam off the hot market, allowing for the continuous growth of the crypto space.
Let’s analyze how some of the top-cap crypto assets are recovering from the recent two-day pullback and what could be behind their resurgent price action.
Bitcoin Price Recovers from $45K
BTC is currently recovering from heavy losses incurred over the past two days that saw it trade as low as $44,960. The king coin has now retraced almost 15% of those losses in the last 24 hours after buyers rushed in to buy the dip.
One of the most notable buyers of that dip is US payment service company Square Inc., which announced on Tuesday that it bought $170M worth of Bitcoin. The bullish news came just in time to help bitcoin avert a steeper sell-off and retest the $50K level.
Ark Investment Management’s Cathie Wood spoke positively about the latest pullback during an interview with Bloomberg, but failed to comment on whether Ark made a purchase.
“We’re very positive on Bitcoin, very happy to see a healthy correction here, no market is straight up,” Wood asserted.
More bullish tailwinds for Bitcoin and the crypto market came from news that Bitfinex and Tether had finally settled its longstanding probe with the New York District Attorney. As of the time of this article’s writing, BTCUSD up 6% as the bulls retake $50K.
BTCUSD Chart By TradingView
ETH Price Recovers Above $1,600
Ether is tailing Bitcoin’s recovery over the past few sessions. The top altcoin has rallied by up to 26% from its sessional low of $1,356 seen yesterday.
ETHUSD Chart By TradinView
The ETHUSD pair found support at the $1500 level and continued higher above the trend line resistance and $1,650.
The ETH and BTC recovery coincided with a broader resurgence across the crypto space, with top-cap crypto assets such as BNB, DOT, and ADA posting double-digit gains in the daily charts. On the whole, the entire crypto sphere has recovered about $250 billion of its realized market capitalization.