All-Momentum Rally: Crypto Markets are Surging Again as Bitcoin Hits $8,800
After a quiet weekend, bitcoin (BTC) and the broader cryptocurrency market surged anew Sunday afternoon, erasing the prospect of one last major correction before the $300 billion market cap becomes reality once more.
Crypto Markets Surge
With the exception of Binance Coin (BNB), which is already trading near all-time highs, all major cryptocurrencies reported gains late Sunday. Bitcoin’s breakout was most notable, with prices peaking a tad above $8,800 on Bitstamp. That’s the highest level since April 2018 when the market was still unwinding from its previous peak. The leading digital currency was last seen trading just below $8,700, having gained 7%.
Bitcoin euphoria appears to be heating up once more. The accumulation/distribution (A/D) line suggests more and more investors are buying and holding BTC. A rising A/D line generally confirms a rising price trend.
The rally also spread to altcoins and tokens, which are now collectively valued at around $114 billion, according to CoinMarketCap.
Ethereum (ETH) climbed 5.7% to $266.61. The value of XRP returned above the 40-cent mark, gaining 5.7% to $0.4087. Bitcoin cash (BCH) jumped 6.3% to $432.09 while Litecoin (LTC) added 8.3% to reach $111.09.
Looking beyond the top ten, Tron (TRX) surpassed the 3-cent mark after Justin Sun teased a major announcement concerning TRX and BitTorrent. Unlike the other majors, TRX began its rally earlier in the day. Read more: Justin Sun Announces Announcement; TRON & BitTorrent Prices Spike Accordingly.
The combined value of all cryptocurrencies peaked north of $268 billion on Sunday, a new high for 2019. Since bottoming in December, the crypto market cap has recovered nearly $168 billion in value.
The All-Momentum Rally
While there was no immediate catalyst for the sudden burst higher on Sunday, the seeds of a prolonged bull market were planted months ago when investors finally realized that bitcoin had already bottomed. Bitcoin has been in accumulation mode since the start of 2019, a trend that intensified at multiple intervals beginning in February and continuing through to May.
The market experienced a sudden pullback less than two weeks ago after a mysterious trader unloaded 5,000 BTC on Bitstamp. But the market quickly recovered, sending bitcoin back above $8,000 in less than 72 hours.
Despite bitcoin regaining 8k, the market had no appetite to push prices higher. This led our own Kiril Nikolaev to conclude that another altcoin season is on the horizon as bitcoin gives back some of its market share. This view was backed up by Galaxy Digital, which gave altcoins two weeks to accumulate before the bitcoin bulls returned. That view was based on a symmetrical triangle formation, which gave bitcoin a 60% chance of returning to $10,000.
$BTC is currently forming a symmetrical triangle and that means a 60% chance of breaking upwards on its way to $10K.
It's important to keep a closer look because when it will confirm a direction, alts will retrace.
But for now, we have approx 2 weeks to enjoy the altcoin party. pic.twitter.com/lD3KoZb4va
— Galaxy (@galaxyBTC) May 22, 2019
Galaxy made its prediction about four days ago, which means bitcoin’s breakout happened much sooner than expected (then again, we are still way off the 10k level).
At this stage in the game, momentum is clearly on the side of the bulls, making a major retracement back to yearly lows extremely unlikely.
That view was recently shared by cryptocurrency trader Satoshi Flipper, who told CCN’s Joseph Young that a BTC pullback is still coming, but that it will be much less severe than previously feared.
“I’ve been definitely vocal about a healthy BTC retrace, but I do not believe it will be a drastic 30% retrace back into the $4k’s. Once we form a local top, I believe we will 10% at the most, then settle down sideways.
That is when we’ll have a real altcoin season that everyone is expecting. Upon the immediate retrace, altcoins will take a small hit, but then when BTC settles down sideways, altcoins will rebound in a huge way.”
The crypto bulls are quickly regaining momentum. This trend is expected to intensify the closer we approach next year’s bitcoin halvening event. If history is any indication, bitcoin will likely reach new record highs at some point over the next two years.
Disclaimer: The author owns Bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
Featured image courtesy of Shutterstock. Charts via TradingView and CoinMarketCap.