The crypto market took a hit over the weekend amid growing macroeconomic tensions. Bitcoin, for instance, dropped to $112,000 for the first time in over three weeks. Meanwhile, Ethereum too dropped to $3,400 level, despite having outperformed BTC in recent times.

However, the crypto market seems to be in recovery mode as Bitcoin, Ethereum and other altcoins start to regain lost ground. But will the market move into full recovery this coming week? 

Crypto Market Gains $52.85 Billion

Over the last 24 hours, the crypto market has been surging following the recent slip up. On Saturday August 2, the market dropped below the $3.6 trillion level following the dip in BTC and altcoins. However, the crypto market has now gained $52.85 billion on the day. According to the daily chart by TradingView, the total crypto market cap (TOTAL) now sits at $3.63 trillion, marking a 1.45% surge. 

In case the upside momentum continues, the market could face resistance at $3.75 trillion. But, turning this level into support could trigger full blown market recovery with the next resistance at $3.94 trillion. However, bulls must back the current rally for the crypto market to achieve these levels. 

On the other hand, if the TOTAL fails to hold the current level, a dip will be imminent. The immediate support area now lies at $3.56 trillion. Clearance of this support could lead to a plunge towards the next support at $3.42 trillion, and potentially fuel bearish momentum. 

Bitcoin Climbs Above $113K 

With the crypto market now recovering, Bitcoin (BTC) has also expressed signs of recovery. BTC was previously headed towards breaching a key support level but is now trading at $113,692, as per the daily chart on TradingView. This surge, as depicted by the green candle on the chart shows that the coin could continue to rise further after five days of turmoil. 

At the moment, surging past $115,019 backed by strong volumes could signal a return of buyers. This could potentially push Bitcoin towards the next resistance at $117,989 where it could consolidate before the next leg up. However, achieving $120,000 could signal a strong recovery for Bitcoin. 

However, in case the recent upward momentum fails to hold, this could spell more doom for Bitcoin. The recovery from the recent slip up has now established $112,008 as a strong support for Bitcoin. Nonetheless, a breach of this level could trigger a deeper dive towards $110,114 or even lower to $108,002, wiping out all the previous gains achieved as BTC rallied to a new ATH at $123,200. 

Ethereum Follows Through 

Besides Bitcoin, Ethereum (ETH) has also followed through the crypto market recovery. While previously down to slightly above $3,300, the coin has rebounded to $3,456 as of this writing, according to data by TradingView. This slight recovery shows that investors have started to regain confidence. 

Ethereum must continue rising to recover fully. The immediate resistance sits around $3,593 and clearance of this level could push ETH even higher. The next resistance lies around $3,756 which is breached could push Ethereum towards $3,900 level again, marking a stronger recovery. 

In case the current momentum reverses, Ethereum could dip towards the support at $3,354. Failure to hold above this level could trigger another wave down toward the next support at $3,139 or even below $3,000. In such a scenario, ETH will shift into a downtrend as selling pressure could increase further. 

What to Expect in the Crypto Market Moving Forward? 

Whether the crypto market continues to recover or slip up further will depend on developments across the macroeconomic environment. In particular, Trump’s new tariffs on countries like Canada and Switzerland have taken a toll on the market. Any positive developments between the US and these nations regarding tariff agreements could set off the market for recovery. 

However, any retaliation could dampen the economic scene and potentially fuel a crypto market crash. Traders and investors must thus keep watch of developments around tariffs between the US and other nations to determine their next action.