Bitcoin and crypto market witnesses a small bounce as long with the stock markets traders begin to form bullish sentiments around price.
Despite the bearish fear and sell-off due to Coronavirus, the stock markets also witnessed a historic rise yesterday, with the SPX index rising by 6.24%. However, many investors suspect a dead-cat bounce as the state of the economy is far from recovered at the moment.
The price of Bitcoin [BTC] at 4: 30 hours UTC on 27th March, 2020 is $6,800. If the correlation with stock markets, hold true, gains in Bitcoin might continue as well.
Moreover, the percentage dominance rise in Bitcoin [BTC] gets rejected at the 200-Day Moving Average at 68%. The leading gainers of the crypto yesterday include, XRP
Moreover, the Bitcoin crypto markets is also witnessing a revival of liquidity in the markets. It dropped tremendously at the time of the panic sell-off on 13th March, 2020. Prominent crypto-trader, XC, tweeted,
Liquidity slowly entering back into the market. Was around 20mil to move the market 10% at lows, now its more then doubled at around 55. $BTC
The rise in liquidity along with increasing volume of stablecoins will look to benefit the crypto-markets at large. The bull markets usually begin with Bitcoin, and then moves onto large and eventually, mid-cap altcoins.
The rise in XRP above $0.17, with a 8.95% bounce on the daily scale seems to suggest that the relief in altcoins is near as well. However, the skepticism due to weak fundamentals (risk asset during uncertain times) behind the rise remain intact.
Altcoins projects are likely to witness a slow-down in progress and adoption. Moreover, due to the risk associated with these assets, the current marco environment continue to point to bears. Prominent crypto trader, Don Alttweeted,
BTC looks like it could go up, down or sideways. Alts look like they could go down, down or down.
Do you think are altcoins are priming for a bull run or it is a dead-cat bounce? Please share your views with us.