Two weeks have passed since the review of the crypto market. I'm eager to share good news with you! The crypto market is reviving from a sleeping mode. This buzz is not about optimistic trading expectations but it reveals a strong chance of hitting a new local high.
Greetings to all crypto hamsters and savvy crypto fans!
Two weeks have passed since the review of the crypto market. I'm eager to share good news with you! The crypto market is reviving from a sleeping mode. This buzz is not about optimistic trading expectations but it reveals a strong chance of hitting a new local high.
A slump in the crypto market which took place in early September spooked a crowd of traders. Lots of them went into a panic. We cannot blame them at all. The bitter experience of the recent years highlighted that sometimes the crypto market can enter a protracted losing streak. So, crypto investors have to survive a so-called severe crypto winter. I mean that the crypto asset used to tumble 30%, 50% and even 80% of its value.
You may wonder why the crypto market is going to develop in a different way nowadays.
The year of 2020 is challenging for the global economy. Investors want to play safe. So, they try to diversify their risks as much as possible. This trend is confirmed by regular news on humongous investment in Bitcoin and Altcoins by large investment funds.
*The Tudor Investment hedge fund announced a Bitcoin purchase to the amount of $50 million in June.
*The Grayscale Investments crypto fund sent $1 billion to buy Bitcoin in July.
*In August, MicroStrategy bought 21,454 BTC for $250 million. In September, another deal followed with 16,796 BTC worth $175 million.
*The Square payment firm, established by Twitter CEO, invested $50 million in Bitcoin in October.
The above-said deals have been leaked in the media. There are much more deals which remain a mystery to the public because they are anonymous over-the-counter deals.
In the meantime, decentralized financial apps like DeFi (Decentralized Finance) have launched a mechanism which has been pumping up huge cash into the crypto market. This hype is still going on.
Such buoyant demand for crypto currencies is almost the same like in 2017 when crypto assets were developing a stunning bullish run. Now there is a growing likelihood that we will see soaring prices both of Bitcoin and Altcoins.
Interestingly, the market environment based on the hype looks quite similar in 2017 and 2020. There is something more in common from the point of technical patterns. The recent downward correction of Bitcoin is like the one of 2017 in terms of its structure and dynamic. Besides, everyone knows that the price hits new highs following the correction.
The Bitcoin's advance in the latest days could set the tone for market developments and dispel fears. So, Bitcoin is on track to hit the strongest level of the current year - $12,486 per token.
Besides, the bullish trend of Bitcoin will entail a rally of other Altcoins that suggests lucrative investment opportunities.
Trading prospects
Since October 7, Bitcoin skyrocketed by over $9,000. Isn't it amazing? Persisting this pace of growth, there is a good chance that Bitcoin will be able to rebound to $11,900/$12,300 where the most popular cryptocurrency will enter a crucial stage. In case the price fixes above the level of $12,486 and breaks it, Bitcoin could test the local 2019 high of $13.868.
The crypto market develops in such a way that the market is very sensitive. If there is sharp surge or a tailspin, the market will develop either like a powerful flood tide or ebb tide. This ensures a clear-cut trend.
Overall market environment
Analyzing the overall market capitalization of the crypto industry, we can see that the total market cap gained $42 billion to nearly $365 billion at present.
The steady recovery is evident even in terms of trade volumes. Let me turn your attention to the corridor of $320/$355 billion that has been passed lately. This is a good signal for reviving trading interest.
Market Cap: $365,365,274,357
BTC Dominance: 58.2%
The emotional index (or the fear and euphoria index) for the crypto market added another 10 points to 52. It does not indicate that overwhelming fear flying over the market in early September.
Market Cap: $ 365 365 274 357
BTC Dominance: 58,2%
Indicator analysis
Various timeframes show that technical indicators signal buying opportunity. This is true about a 4-hour, daily, and weekly timeframes. This sentiment is confirmed by the BTC uptrend.
