Initially, the cryptocurrency market reacted harshly to the news with Litecoin and Ethereum falling to fresh multi-month trading lows. A powerful recovery was subsequently observed as BTC surged above $7,100.
TRON is currently one of the top performing cryptocurrencies inside the top 20, with gains of around four percent.
The total cryptocurrency market capitalization is $197 billion, approximately the same as yesterday.
Bitcoin will remain pressured for as long as the price fails to close above the October monthly trading low around the $7,300 level.
So far, the recent decline under $7,000 has found strong support from the $6,850 level.
Short-term technical analysis shows that a bullish inverted head and shoulders pattern is still valid. The rebound further cements this view. If buyers can move the cryptocurrency above the $7,380 level, a relief rally towards $8,000 could follow.
After finding strong technical support from just above the $0.01300 level earlier this week, the TRON/USD has made a strong rebound back toward $0.01550.
The recent reversal from $0.02300 has created bullish MACD price divergence extending towards the $0.01800 level. Furthermore, a bullish inverted head and shoulders pattern with a $0.0200 upside projection has formed.
Continued strength above the $0.01550 level would suggest that the recent bullish reversal will continue up towards the $0.01800 level before pausing.
According to the latest data from The TIE, sentiment toward the cryptocurrency market has improved to 58 percent.
Bitcoin has the strongest sentiment among the top 10 cryptocurrencies at 71 percent. Meanwhile, Etheruem has the weakest at 31 percent.