2019-4-23 01:14 |
The crypto markets continue to rally after the weekend dip, with investors developing a more bullish outlook.
While the month of April has been extremely profitable for Bitcoin and altcoins, with the majority of top 10 coins up 50 percent or more, analysts have been debating the direction of the market. On one hand, bearish analysts are predicting a price retraction for Bitcoin, claiming that the market is entering overbought territory. Cryptocurrency fell throughout the majority of 2018’s calendar year, and has built a fair amount of detractors who find it difficult to believe that the asset is in for a resurgence.
However, April 2019 is challenging the notion of a “crypto winter,” with coin prices soaring across the board. Bullish analysts such as Fundstrat’s Tom Lee, who publishes regular updates including his Bitcoin Misery Index (BMI), believes that the currency is giving positive indicators. While Tom Lee’s most recent BMI publication found BTC to be at its highest level in years (with a higher BMI indicating positive sentiment), it also complicates the price analysis for the coin. Elevated BMI has historically indicated a reversal in price on the near horizon. But, as Lee points out, Bitcoin’s current BMI is much higher than values typically seen in a bear market, leading the analyst to conclude that the market is entering a bullish phase.
Adamant Capital, a market research firm, is also reporting that Bitcoin’s price could take off shortly. According to the firm, Bitcoin and the crypto markets have entered an “accumulation phase,” with long-time holders and institutional investors increasing their position at current BTC prices in anticipation of an increase coming. Adamant is highlighting decreased price volatility in conjunction with unrealized profit & loss (P&L) as a strong indicator that retail investors sold out of crypto in the severe price fall of November 2018. With the glut of bearish sellers depressing the price of Bitcoin gone, the currency is opening up a corridor for a bull run–the type of price anticipation that is leading to the current accumulation phase.
Other cryptocurrencies are benefiting from the positive price movement hitting the cryptocurrency marketplace. Cardano ADA posted a 5 percent gain on the day, as investors look to a possible Coinbase listing to catalyze the price further. Binance Coin BNB has continued to be one of the largest gainers in 2019, with the currency posting a 300 percent price increase since the start of the year.
Some of the market analysis is now shifting to whether Bitcoin or altcoins will benefit most from a cryptocurrency rally. Historically, Bitcoin gains have been followed by investors shifting profit into alts, with the opposite occuring during periods of BTC dips. However, the broader industry of cryptocurrency has changed in 2019, with adoption extending beyond just Bitcoin.
BTC, as the market leader, will continue to draw the majority of interest and development focus. But currencies like EOS and TRON are building strong followings through their network and DApp platforms, which could in turn lead to greater investment that is not exclusive to BTC.
The post Bought the Dip? Cryptocurrency Rallies After Weekend Drop appeared first on Ethereum World News.
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