Bitcoin and the wider crypto market witnessed a sharp sell off on Monday and Tuesday, but many analysts believe the rally will quickly resume after this brief downturn.
Bitcoin’s price has been hovering between the key $52,000 and $43,000 levels in recent weeks – a region that has previously been a crucial battleground for the world’s most popular crypto.
Yesterday, the bottom end was again under siege, but the level was successfully defended. In the prior several weeks, there appears to have been a significant shift in momentum, and the ceiling appears to be much more vulnerable.
Even more so than Bitcoin, a number of altcoins look very undervalued, particularly following the recent market downturn.
ZAP/USD rally continues at the extremes; a buy the dip opportunity?
The price of ZAP/USD is showing bullish impulsive sequences in the cycle from the August 6 crossing of the moving average (MA 50) at $0.045. The pair had made a bounce and another marginal swing down at the extremes displaying incomplete bullish or bearish swings sequences. This creates an opportunity for shrewd investors to buy the dip.
As the main trend turns bullish at this time, a further rally is expected beyond $0.050 and it’s going to be a good test of the newfound optimism as buyers retake key zones.
Should the dip be bought and the prior lows remain intact at $0.032, it may well mark a bottom in these volatile markets and spur a new wave of optimism among ZAP investors.
MATIC rebounds off $1.06; neutral profile in short term
MATIC found strong support at the $1.06 level after a two-day price decline culminated into a massive selloff on September 7. The price is currently holding near the MA 50 at $1.28.
Traders should keep an eye on the MATIC/USD pair before jumping into trades as the RSI remains in negative territory, suggesting a slight advantage to the bears. Contrarily, if the pair reverses its short-term direction to the upside, the bulls will probably challenge the previous top at $1.80.
A break higher could last until $2.48 before targeting the May all-time highs of $2.89. Otherwise, additional declines may drive the price towards the strong support at MA 200 ($0.96) from where the bulls may give the uptrend another chance. To reiterate, MATIC/USD’s neutral bias remains likely in the short-term.
GRT rebounds off $0.71 low
GRT fell sharply on Sept. 7 to lows of $0.71 but after slipping to this level, it quickly rebounded. As a result, we could expect prices to recover off the lower support level at MA 50 ($0.79). The sideways range will, however, remain in place. Thus, gains will be capped near the upper resistance level of $1.09.
Only a breakout above this level could confirm further gains targeting the MA 200 at $1.14 and then the $2 range.
However, the declines seem not yet complete, with the RSI having a bearish outlook below 50. In the event of further declines, then we expect a move back to the $0.71 level. This could potentially result in prices falling even lower. The $0.42-$0.47 range will become the key downside target in the event of a larger correction.
This week’s fall will unquestionably prompt many investors to buy the dip, but it’s important to stick to buying coins and tokens with solid long-term fundamentals and a strong use case to maximize your returns.
It’s likely the crypto market’s bull run will swiftly resume, with Bitcoin and Ethereum leading the charge and pulling up the broader market with them in the remainder of 2021 and early 2022.
Of the three altcoins analyzed in this article, ZAP has the most bullish short-term and long-term outlook. And, with it trading at around $0.047, it is heavily undervalued and well-poised for a surge.