Bitcoin (CRYPTO: BTC), Ethereum (CRYPTO: ETH) and XRP (CRYPTO: XRP) are down between 1.5% and 3.5% over the past 24 hours but one analyst maintains that a short-term recovery is possible.
Major Cryptos Flash Buy Signals but…
Crypto chart analyst Ali Martinez highlighted four-hour TD Sequential buy signals across three major cryptocurrencies, suggesting their recent pullbacks could be nearing an end.
- Bitcoin has fallen 5.55% from its Oct. 5 high of $86,976 to $82,150, triggering a buy signal that could indicate a potential rebound.
- Ethereum flashed a similar signal after dropping 7.36% from $2,738 to $2,537. Martinez identified $2,620 and $2,650 as potential recovery targets if buyers return.
- XRP also generated a buy signal following its decline from $1.53 to $1.39. The analyst noted that an earlier TD Sequential sell signal closely aligned with XRP’s local high, raising the possibility that the latest buy signal could mark a local bottom.
Martinez cautioned that the next few four-hour candles must confirm renewed buying pressure before a sustained recovery becomes more likely.
…Altcoins May Not Follow
Heavily followed analyst Kevin on Wednesday said altcoins are in their strongest technical position in six years to outperform Bitcoin, supported by improving macroeconomic conditions and momentum indicators.
He pointed to the first bullish monthly MACD crossover in the altcoin-to-BTC chart since April 2020. It suggests a potential long-term shift after four and a half years of underperformance.
Martinez added that even if BTC, ETH and XRP stage short-term rebounds, selling pressure could persist across select altcoins.
Chainlink (CRYPTO: LINK), Cardano (CRYPTO: ADA) and Solana (CRYPTO: SOL) may see further downside though.
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