The major cryptocurrencies got bought aggressively following the weekend liquidation, and the most valuable coins rallied back above their prior high, giving the first confirmation of a possible long-term trend change. Bitcoin surged past $2150 and hit the key $2250 level, with the timing of the previous being almost perfectly in line with our prior projection.
Apart from the technical position, BTC and the broader market were both boosted by the favorable developments regarding the BIP91 protocol that could save BTC from a hard fork event on the coin’s Judgement Day.
BTC/USD, Daily Chart Analysis
The coin did spike briefly below the base pattern that we have been monitoring, but the current rally should have marked the end of the correction, with the long-term picture reaching oversold territory last week. Most of the other majors and smaller coins are also sporting double digit gains from the lows, as the oversold currencies are slightly catching up to the likes of Litecoin and Dash which were holding up during the lengthy sell-off. Let’s look at the how the majors stand after the strong bounce.