Is Bitcoin’s Bearish Market Truly Over?

The crypto market has been going through a very volatile phase for the last few months now, but atleast after a prolonged bearish phase, things have started to look up. Sentiment on the crypto market has been shifting too, as of late, with the market capitalization moving from $131 billion to $137 billion. Also, the surge in the value of Ethereum, Enjin coin, and Litecoin cryptocurrencies has also impacted the change in sentiment. Even then, the analysts have issued warnings that the bearish trend may not be truly over yet.

A technical analyst, Donalt recently said that the crypto market had been riding a new wave of optimism which he believed was also the primary reason behind the recent spike of the Ethereum cryptocurrency. However, this does not indicate that the winter market is over according to him. Donalt is of the opinion that until Bitcoin price trades above the $4,600 mark, moves towards $5,000 and $6,000, it is difficult to conclude that the bear market is truly over. Moreover, surges were noted in the values of Litecoin and Enjin Coin against both Bitcoin and the U.S. dollar in the range of 20 and 100 per cent. The volume of Bitcoin has also recorded a hike and increased to $11 billion recently. But, even though an increase was also noted in the trading volume of Bitcoins, its value is still ranging between $3,800 and $4,000.

Despite the changes in the crypto market, Donalt explained in his words that

“Volume isn’t what will convince me that the bear market is over, a bullish market structure along with a break of at least $4.6k (Favorably $6k) is. It’s interesting that we’ve had so many altcoin pumps while the general market cap hasn’t really changed. That makes me think there is very little new money coming in.”

Donalt believes that Bitcoin needs to break the $4,600 mark before it can be concluded that the bearish trend is over; he still thinks the value of Bitcoin is moving in the bullish direction due to the price movement of most cryptocurrencies.

Rishma Banerjee

Rishma is currently pursuing a bachelor’s degree in International Relations and has a special place in her life for sifting through all sorts of random trivia, thank you very much.