Bulls Back Again? Three Reasons Why We Are Set to See the Upgrades Once Again
After January 2018, cryptocurrencies dominating the headlines for all the wrong reasons. Some even went onto say that this is the proof of Cryptocurrencies are ‘ponzis’ but worth noting that they are tend to make strong recoveries when the hope all starts to fade away.
At press time, most of the established coins by market cap are reporting strong gains, particularly ETH, XMR and EOS leading the race. Also, the total market cap has edged back up to $200 million after a depressed period earlier this week.
Analysts say despite the increase, it’s still to early to say that bulls are back at it again, but if you look it closely, there are factors that made us think another bull period is on the horizon. Let’s see what these three reasons are:
1-) Ether Recovery
ETH/USD had fallen more than 40 percent since September 5, and the second leading cryptocurrency also experienced a heavy 85 percent downfall from its all-time high $1,4000 back in December.
Ethereum dipped towards $167 earlier this week but the price has recovered more than 20 percent and some even went onto say that ETH is well and truly back. At the time of writing, Ethereum currently trading around $216 with 14,7 percent increase and some technical analysis went on to state that if Ethereum price breaks out $230 resistance, then our most exciting target is $1100.
Considering Ethereum Blockchain is a home to lots of alternative cryptocurrencies, increase in the Ether means recovery is on the cards for others as well.
2-) BTC’s Short-Term Strength
Bitcoin, the world’s largest cryptocurrency by market cap, currently showing strength, especially in the short term.
After dropping by 70 percent from its all-time high $20,000 back in December, Bitcoin is dominating the headlines with all possible wrong reasons but if you look closely to the chart, it is silently saying that a major bullish reversal pattern is on the cards.
As Bitcoin manages to stay above the trendline, many analysts are saying that there are reasons to be optimistic. Some even went onto say that if BTC set a higher by moving above July high of $8500, then a rally towards $10,000 could be possible.
3-) The Situation in Global Markets
Speaking generally, after reports confirming that U.S and China are heading back to the table to discuss the ongoing tariffs, the risk appetite in global markets set for lowering if both sides negotiate successfully.
For example, the AUD/JPY pair, which is widely considered as a risk barometer of global markets, is up 1 percent at the time of writing. Investors are clearly hoping that U.S and China will come to an agreement that’ll boost the global markets, but worth noting that both sides unable to agree on such terms before, despite negotiations.
Also, Turkey’s Central Bank hiked rates by 625 basis points to save its stumbling Turkish Lira and that move has pushed the equity markets higher across the globe.
All of this will likely bode well the cryptocurrency sector also as the investors are still considering Bitcoin and other cryptocurrencies as risk assets.