The last 24 hours of the growing crypto market has observed its most frenetic day in many months! In an unusual trend, the price of Bitcoin (BTC) flatlined, before steadying at $10,250, during which time, many top altcoins significantly surged.
As can be observed in the chart from Coin360 below, cryptocurrencies in general, apart from Bitcoin and a few other laggers, pretty much shot vertical, displaying a bout of strength on a caliber that was all too similar to the 2017 bull run. Undervalued but long term crypto HODLR favorite, Ethereum rose 7%, smashing through key resistances to hit $212. At the same time, XRP topped the key $0.30 price point, locking in a 16% gain on Tuesday. I know! Mental, right?
In an amazing summary: Tuesday was a perfect microcosm of 2017’s mania.
Although many maligned altcoin holders have certainly been happy — actually, more than happy, I’m sure—by this mostly unexpected move, Bitcoin investors, of whose number has been growing considerably with the alleged “death of altcoins” phase, have been left shrugging their shoulders and wondering: what’s next for the BTC price?
With good news on that front, analysts have some answers.
Bitcoin Price Steady in Micro “Altseason”
It is crucial to mention that throughout this 2017 microcosm, Bitcoin managed to stay relatively solid, delivering a negligible-yet-non-zero gain of 0.15% on Tuesday. This suggests that although BTC was pouring into altcoins, new fiat continued to enter and stimulate the Bitcoin market.
This perpetuated Bitcoin’s low volatility. As previously reported by NewsBTC, the asset’s volatility per BitMEX has fallen to a zone “where massive price moves are born”, as analyst Chonis put it. Although these “Massive price moves” can be up OR down!
This low volatility indicates a strong move in the coming days. And this strong move is commonly agreed to be one to the benefit of BTC owners.
Over the previous couple of months, Bitcoin has actually found itself trading in a clear triangle, seeing greater lows and lower highs. While some have taken this as a bearish indication– consistently lower highs could be viewed as a loss of bullish momentum– widely known expert Jacob Canfield keeps in mind that per a research study from Bulkwoski, coming down triangles in an uptrend break upward 63% of the time.
The technicals are helpful of impending favorable price action. Trader CryptoHamster just recently made use of historic price patterns to make this point.
He wrote in the below tweet that Bitcoin's one-week Stochastic Relative Strength Index (RSI) just recently experienced a “significant bullish crossover”, with the trend sign bottoming and hinting that it wishes to roll higher. The reason why this is very important: the past 11 times this took place marked the local price bottom for Bitcoin.
Certainly, as he points out in his chart above, this technical indicator denoted the $3,150 bottom in December, innumerable short-term bottoms in Bitcoin's 2017 uptrend, and bear market bottoms in 2018, which were followed by price spikes higher.
And also who could forget the fundamentals? Which also sustain the buoyant sentiment pertaining to Bitcoin's price.
Next week, Bakkt, the crypto platform championed by the New York Stock Exchange's owner, Microsoft, Starbucks, to name a few firms, will be releasing its flagship product: physically-deliverable Bitcoin futures.
Bakkt is disclosed by markets research firm Fundstrat Global Advisors to have a “critical mass” of institutions banging at its front door, set to adopt the futures once they hit the marketplace. Fundstrat has also written that Bakkt is very likely to transform the dynamic of how institutional investors involve themselves in Bitcoin for the better.
Furthermore, legendary analyst PlanB has said that Bakkt's derivatives will entice institutional investors to Bitcoin, hamper the cash-settled CME futures from creating paper BTC, and disincentivize short sellers.
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