The global crypto market cap has risen over $17 Billion USD in the last 48 hours, driving Bitcoin tantalizingly close to $9,000. Could this be an early indication that the bulls are back?
Has the crypto market turned long-term bullish?
In the last 48 hours, the overall crypto market cap has seen a stunning cash injection of over $17 billion USD. This could be an exciting early indicator that the pendulum of market sentiment has swung back to favor bullish traders. As of this writing, the market currently sits at $246 billion USD, if it can keep this positive momentum and cross the $250 billion USD mark, then this could be a strong reversal signal.
The crypto market has not crossed the $250 billion market cap threshold since last November. This would signal the end of a 7 month bearish decline in market capital, and breathe new life into long positions. The bearish sentiment has been in effect since last July when Bitcoin hit it’s yearly high for 2019 of $14,000 USD.Bitcoin right now, however, is up 5% for the day, and is approaching a price of $9,000 USD.
If the total crypto market cap can cross the $250 billion level, we may see a higher high for the first time since last June.
This could be a hint of the start of an explosive breakout in anticipation of Bitcoin’s halving scheduled to take place in May.
Bitcoin analysts can’t seem to agree on what stage of the market cycle we are in
Bitcoin is a very small, nascent market with a high degree of volatility, so making predictions on price is never easy. In the past week, crypto analysts have predicted a bearish decline which was expected due to the yearly decline in price and volume seen from the Chinese New Years celebrations. However, it seems these predictions did not pan out as expected, and Bitcoin has gone on to have its best January since 2012.
In another price forecast from the last week, several high profile traders, including the legendary Peter Brandt, predicted that the expected Chinese New Years slump would not occur, and that the market could break out in a bullish direction. So far, it seems like they might be on to something.
If the Bitcoin market can continue it’s bullish momentum and cross the $250 Billion mark, it could be the corroborating evidence needed by traders to confirm their bullish suspicions. The looming spectre of Bitcoin’s halving may be having an unseen impact, as institutional investors load up on cheap BTC, as it fluctuates in the heavy accumulation zone of $6000-$8000 reported by Tuur Demeester of Adamant Capital.
If we do see the crypto market make a reversal of the 7 month decline, we can possibly expect to see some fireworks as traders position themselves for front running the hype surrounding Bitcoin’s halving.
Has the market gone bullish, or are we going to see more bearish price action? Let us know in the comments!
Images via Shutterstock, Chart by Coinmarketcap
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