The cryptocurrency market is bouncing back on Tuesday as Bitcoin and a number of leading altcoins reversed the heavy trading losses incurred early on Monday.
Bitcoin is holding firm above $7,000 level as buyers attempt to stabilize the cryptocurrency above the October monthly trading low, located around the $7,300 level.
Ethereum and Bitcoin SV are some of the best performing cryptocurrencies in the top 10, both posting double-digit gains.
Cosmos is one of the main outperformers and has recovered close to 20 percent of its trading value since Monday’s plummet below $3.
The total cryptocurrency market capitalization is $190 billion, an increase of 11 percent since the start of the week.
Cosmos has been a strong price recovery since Monday and is now technically bullish across both the short and the medium-term horizon.
The bounce back from below the $3.00 level further underpins the notion that the ATOM/USD pair is headed much higher over the medium-term.
Buyers now need to rally the price up to $4.30 to ignite a large inverted head and shoulders pattern that has the potential to take Cosmos as high as $7.00.
Total Market Capitalization
The daily time frame chart of the total market capitalization is showing that traders bought in heavily from the $173 billion level on Monday, creating a bullish reversal candle.
While a medium-term bottom has not yet been confirmed, stabilization above $207 billion level would encourage traders to long the crypto market. The RSI indicator is also showing that the total market cap is at its third most oversold level on record.
The trading action around the falling wedge pattern on the daily time frame remains key. A technical breakout from the $173 to $207 billion price range should determine the next strong directional move.
According to the latest data from The TIE, sentiment toward the cryptocurrency market remains neutral at 45 percent.
Bitcoin has the strongest sentiment among the top 10 cryptocurrencies at 66 percent. Meanwhile, its fork Bitcoin SV has the weakest at 38 percent.