Global stocks are trading near record highs, with Asian markets following Wall Street higher after soft U.S. jobs data eased expectations of a Fed interest-rate hike. The renewed risk-on sentiment is also supporting the crypto market, which remains in recovery mode.
The Crypto TOTAL market cap chart is now decisively breaking above its channel resistance line within an intraday five-wave bullish cycle. This is an encouraging technical development and suggests that a larger recovery could be underway.
However, despite the bullish breakout, it is still worth remaining cautious in the short term. After the recent strength, we could see at least a corrective pullback before the next larger advance develops. Some of the weaker altcoins may still need to revisit lower support levels before joining the broader recovery.
As long as the overall market structure remains bullish and the breakout holds, the current move could eventually develop into a much larger recovery. Therefore, traders should closely monitor the next corrective phase, as it could provide another opportunity to identify stronger setups within the crypto market.
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