Bitcoin crossed the $9,000 mark for the first time in 2020 after showing clear signs of an uptrend. Unlike most rallies that take participants unawares, the recent run by Bitcoin did not come as a surprise.
In our earlier posts, we revealed some of the reasons why users expected Bitcoin to embark on an upward movement. Beyond just gaining in price, reasons why explosive movements are expected of the cryptocurrency were also elaborated. However, what remains of the market uncertainty is whether this is the beginning of that “explosive movement”, or whether there would still be a pullback in the short term.
Altcoins Are Rising Too
Bitcoin has not travelled alone to the north side, it has pulled along with itself several altcoins. This development is highly suggestive of a recovery of the entire cryptocurrency market as a whole. For instance, chart patterns for Ethereum suggests that a significant accumulation period is quickly coming to an end. At the same time, it is nearing a major level around the $200 mark. It Ethereum breaks through this region, there are suggestions that the $340 level will become a likely target.
Smaller altcoins are registering positive numbers as well, some of them posting relatively high recovery rates over short periods of time.
Within the last 24 hours, Ethereum Classic has gained over 15% of its original value. EOS has gained more than 9%, and so has Bitcoin SV. Even cryptocurrencies that are ranked much lower, based on market capitalization have not been left out of the party. Civic gained over 22%, while adToken registered an outstanding 211% increase in price.
Altogether, the total market capitalization of cryptocurrencies has risen again, standing above $250 billion at the time of writing. This will come as a delight to crypto users who have remained hopeful since the beginning of the crypto winter. Majority of this category of people are those who were involved in the ICO market. Many of them are stuck with tokens that have become almost worthless.
Altcoin Investor are Having Renewed Hope
Among the ICO investors, apart from projects that have packed up completely, hope seems to be coming alive. This is more particular with projects that have continued with their developmental processes, despite the bear market. Perhaps, the market will bounce back soon enough, and investors will return to the marketplace. This is something that is necessary for the crypto marketplace for purposes of network effect and increased adoption.
Bitcoin’s current situation is impressive. It showed signs of movement, and seems to be respecting that. This, in a way suggests some reasonable growth in the marketplace. Unlike before when little elements can throw the market into a motion frenzy, primary indicators have been shown some respect. This is something that if it keeps happening, will even attract more investors and traders into the cryptocurrency marketplace.
Bitcoin has been impressive lately, and the signs look good for an even more impressive future. However, the possibility of significant pullbacks cannot be neglected. To that effect, traders and investors are advised to keep an eye on how things develop. Pay close attention and ensure that your risks are controllable. Always remember that this is the cryptocurrency market, and it is the market that tells you what to do, and not the other way round.
Iyke Aru is a seasoned author and educator in the blockchain and cryptocurrency industry. He has been in the business of crypto content writing for many years with thousands of his articles across several platforms on the internet. Iyke is based in Nigeria where he stands out as one of the most informed and credible figures in the cryptocurrency industry. Outside blockchain and crypto, you will most likely catch Iyke playing or discussing football with friends and family.