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Market Watch May 13: Bitcoin price gains 6%, further upward trend likely.

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After nearly two weeks of continued crash, the crypto market is trying to get up back on its feet. Bitcoin saw gains of nearly 7% in the last 24-hours. Ether, following on BTC’s gains, is up by nearly 5%. The crypto market is shining brightly in green.

But investors are still reluctant as broader fundamental fears continue to plague Bitcoin and the crypto market as a whole. When the world’s most popular cryptocurrency graced the lows of $26,000 yesterday, a broader sell-off wiped off more than $200 billion from the entire market in a single day. With no sign of gains, investors sought to flee amid stock markets plunging from the highs of the COVID-19 pandemic. This was fueled by fears over soaring prices and a deteriorating economic outlook. Investors are just scared of the implications for Bitcoin.

However, a trade setup for BTC price is active. It has generated a stronger entry level due to the recent sell-off. Analysts highlighted that the aggressive long opportunity is a theoretical buy stop at $30,000, with a stop loss at the $27,000 mark, and a profit target at $47,000. This suggests a 5:67:1 reward for the risk, but a three-box trailing stop would help protect any implied profit made post entry.

Hopes on the “Confluence Floor Model”

Bitcoin enthusiasts hope the “Confluence Floor Model”, by TheRealPlanC, could stop the further dramatic decline. This model was developed from three independent floor models that are based on on-chain indicators. PlanC highlights that Bitcoin has only touched the pattern chart three times in history – these are the top 3 times to purchase in the past 10 years. The Confluence Floor Model shows $26,768 as the “absolute low”. So the floor price of Bitcoin, as per this pattern, is rising by around $100 per day. The 30-day and 90-day change on the Confluence Floor Model is just 1%. It should be noted that on the scale of the last 180 days, the increase on the graph reaches up to 25%. Analysts point out that the value of the model has almost always increased.

Altcoins shine in green

Meanwhile, the altcoins have recorded huge gains in the last 24-hours. Ripple’s XRP is the biggest gainer – up by nearly 19% followed by Polkadot at 15%. Dogecoin, Solana, and Cardano have gained 14%, and Avalanche 12.23%.

The next 24-hours are crucial. Its to be seen whether the crypto market will continue with the upward trend or plunge yet again.

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