Crypto Price Analysis: Crypto Bear Market is Over
On our December 7, 2018 crypto update, we published an article asserting that the Bitcoin (BTC/USD) bottom was in. At that time, we were one of the few outlets to make this call while sentiment in crypto was extremely bearish. Our reliance on our technical analysis paid off yesterday, when Bitcoin broke out and climbed as high as $5,106.90 on Bitfinex.
Today, we’ll be once again ahead of everyone else and assert that the crypto bear market is behind us. The price action of Bitcoin and many altcoins in the last 24 hours has given us reason to believe that the entire cryptocurrency market has crossed bull territory. In this article, we reveal why the crypto bear market is over.
Massive Breakout with Strong Follow-Through
The total crypto market cap crossed the $150 billion mark yesterday, April 2. At that point, the enormous volume of 73.673 billion was the highest trading volume ever recorded on CoinMarketCap. This enabled the entire crypto market to breach two resistances at the same time. The first one is the range accumulation resistance of $150 billion. The second is the diagonal resistance of $155 billion.
Daily chart of the Total Market Cap
Taking out two resistances in one day is extraordinary. In one powerful move, the total market cap ended the four-month long range accumulation while also breaching the diagonal resistance that has kept the crypto market bearish for over a year.
What’s even more impressive is that bulls followed through by topping the all-time high of 73.673 billion volume on April 2 with volume of 80 billion, today, April 3. In other words, the total market cap generated one volume all-time high after another in two consecutive days. We have never seen an asset generate two all-time highs in terms of volume in two days. If that’s not bullish, we don’t know what is!
Bitcoin Entering Bull Territory
The biggest reason why the total market cap erupted in the last two days is because the king of crypto has finally entered bull territory. Bitcoin has not only bottomed out, but it also left the bear market.
Just like the total market cap, Bitcoin took out two resistances in one fell swoop. It took out range resistance of $4,250 on CoinMarketCap while also breaching the diagonal resistance that has kept the market bearish for over a year. Take note, it is the same diagonal resistance that broke the $6,000 support in November 2018. Thus, the breakout freed Bitcoin to print its first higher high in fifteen months which it did today, April 3, 2019 after climbing as high as $5,043.08.
Daily chart of BTC/USD
On top of that, Bitcoin also printed its highest daily volume since January 5, 2018 of over 22 billion. If you recall, January 5, 2018 was also the day BTC/USD printed its first lower high after skyrocketing to $20,000. In other words, the lower high plus the heavy volume signalled the start of the bear market. If we apply the same technical concepts, it is within reason to expect that the tremendous volume in the last two days and the higher high signify the start of the bull market.
Altcoins Dumped and Pumped
If you’re not convinced that we’re in the early stages of a bull market, the reaction of many altcoins yesterday should do the trick. Yesterday, many altcoins, including the big names such as Litecoin (LTC/BTC) and Cardano (ADA/BTC) lost between 5% to 10% while Bitcoin was surging. This happened because many panicked sold and converted their altcoins into Bitcoin. Nevertheless, many alts managed to weather the storm.
For instance, Litecoin (LTC/BTC) dumped to as low as 0.013289 on April 2 after opening the day at 0.014583 on Binance. If crypto was still weak, bears would have taken this chance to start a correction. However, bulls used the dip to buy more. As a result, we saw Litecoin trade to as high as 0.017 today. That’s a 27% blast from the April 2 low.
Daily chart of LTC/BTC
We saw the same thing happen in Cardano. It tumbled to as low as 0.0000151 on April 2 but bulls bought the dip and drove the price to as high as 0.00001892 today.
Daily chart of ADA/BTC
We’re seeing the exact same thing happen in many alts. This is a testament to the strong demand for altcoins and cryptocurrency at current levels.
We are in the early stages of a bull market. The buying activity over the last two days tells us that people are positioning for the big run to the top. Hop on while we’re still boarding.
Disclaimer: The writer 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.