Cryptocurrency Market Corrects After Bitcoin Surges Past $12K

BitMEX liquidations reached a peak earlier today as Bitcoin fell from $12.1k to $10.5k in just under an hour. This decline came after days of Bitcoin and the collective cryptocurrency market being in a drastically overbought state. However, after the recent correction, Bitcoin has now rebounded to $11.1k and the majority of altcoins are beginning to recoup their losses.

Last week, Bitcoin futures saw their largest daily volume. While the market is now rebounding, volumes are remaining sustainably high for now.

As you can see, Bitcoin surged above the 11.9K resistance level but was quickly rejected. The Demarker Indicator was also on 100 for multiple days before price crashed. However, the Demarker indicator has now corrected to 79 while the bulls fight to regain momentum. Critical support remains at $11k and $10.8k. Next resistance stands at $12k and $12.4k.

After $VGX’s parabolic run up last week, price has corrected significantly from $0.22 to just over $0.12. However, buy pressure stepped in and the bulls rebounded price to a high of $0.18. While this apparent strength appears positive for $VGX hodlers, it means nothing if $VGX cannot create a higher high above $0.22. In fact, if $VGX cannot make a new higher high past $0.18 in the next few days, the bears may push $VGX into a descending triangle similar to the $XVG chart below.

$XVG Daily Chart: What $VGX chart could look like if buy pressure does not step in.

$XMR hit our target price level of $89 and was quickly rejected all the way to the $78 level before rebounding. However, XMR is still on a green 5 on the daily sequential indicator, therefore, bullish-neutral momentum may continue in the short run. Key levels remain at $82, $85, $87, and $89.

Zcash was another notable mover this weekend, surging past resistance at $90. Similar to $XMR, $ZEC is on a green 5 on the daily sequential indicator, therefore, price may remain neutral-bullish in the short run.

Conclusion

As the cryptocurrency market comes alive these past weeks, 2020 is starting to feel very similar to the crypto market in 2016. Cryptocurrencies are breaking above levels they have not tested in years while also recording record volumes internationally. Despite the recent correction, the activity in the market the last two weeks has been promising and looks to continue the macro cycle going into 2021.