This intense downtrend has led Bitcoin to a critical macro support level that could provide investors with an ideal buying opportunity.
Multiple major altcoins have also approached key support levels over the past several days, with a continued defense of these levels potentially opening the gates for significant near-term rallies in the days and weeks ahead.
Crypto Market Faces Widespread Selloff as Analysts Watch for Short-Term Upside
At the time of writing, Bitcoin is trading down over 5% at its current price of $7,850, which marks a slight bounce from daily lows of $7,700.
The intense downtrend that Bitcoin has been caught within over the past several days and weeks has led the aggregated crypto market to similarly see some intense losses, with Ethereum, XRP, and most other major altcoins erasing the bulk of their 2020 gains.
In spite of the overt bearishness of the price action seen throughout the past few days, it is important to note that the aggregated crypto market may soon see a notable short-term rebound.
The Cryptomist, a popular cryptocurrency analyst on Twitter, explained in a recent tweet that she believes both Ethereum and Litecoin may see some upside if they are able to hold above their key support levels at $195 and $48 respectively.
“Both ETH and LTC have few hours to hold on to their bullish pattern support lines. ETH must hold above $195. ETH must hold above $48,” she explained.
These cryptos are both currently positioned to close their daily candles above these levels, which could mean that they will climb higher in the days and weeks ahead.
Bitcoin Could Spark a Massive Market-Wide Rally If It Bounces at This Key Level
Crypto Bullet – another popular cryptocurrency analyst on Twitter – explained in a tweet that BTC is currently approaching a key macro trendline that has historically sparked explosive upwards movements.
“BTC 1M log scale update. Let’s once again take a look at our beloved log scale chart. As long we are closing the monthly above the trend line this is just another great buying opportunity. Zoom out and look at the big picture,” he explained.
$BTC 1M log scale update
Let’s once again take a look at our beloved log scale chart.
As long we are closing the monthly above the trend line this is just another great buying opportunity.
Zoom out and look at the big picture!#bitcoin #trading pic.twitter.com/Rx7v6X7ZzV
— crypto bullet (@SilverBulletBTC) March 9, 2020
If Bitcoin posts a highly bullish response to this level as it has done in the past, it is highly probable that the aggregated crypto market will also incur some intense upwards momentum in the weeks ahead.
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