Has crypto bull run started? Here’s what experts say
Crypto markets have moved up significantly over the last two days. Prices of several crypto tokens have also increased. Bitcoin climbed to its highest point in over a month, surging over $22,500. Several altcoins have managed to outperform Bitcoin in the last few days with Polygon network’s MATIC token leading the charts.
MATIC jumped over 66% after Disney selected Polygon as a part of its 2022 Accelerator Program. Ethereum also climbed to over $1500. The surging crypto prices give the impression that a crypto bull run has started, or that crypto winter may be cut short if the uptrend continues for another two to three weeks. However, crypto experts believe it may be too early to claim the bull run has started.
“The world’s oldest cryptocurrency saw its best performance in over a month as it touched $22,753 during the day trade. The overall crypto market cap also crossed the $1 trillion mark on Monday with Bitcoin and Ether leading the effort. It’s important to note that it will be too early to call it a bull market as we will have to see if the current momentum is sustained in the next few weeks,” Charles Tan, CMO, Atato, a licensed MPC Custodian Wallet.
According to CoinShares, digital asset investment products witnessed inflows of $12 million last week. However, most of the inflows came from investors betting on a further decline in Bitcoin price. In a blog, CoinShares said the inflows trend suggested that new investors were expecting further downslide while existing investors were not selling their positions.
Cryptos out of ‘extreme fear’ zone
Crypto markets have moved out of the “extreme fear” zone. According to the Crypto Fear & Greed Index, the overall market sentiment is now in the “Fear” zone. Experts say one may expect the uptrend to continue in the coming weeks.
“The market sentiment towards BTC is finally out of the ‘extreme fear’ zone and is at its highest level in over 3 months. The 12-hourly chart for BTC has broken out of the channel pattern. The next key resistance level for BTC is expected at $32,300 and an immediate support level is expected at $17,700. The daily RSI continues to remain in a healthy zone above the level of 50. We could expect the uptrend to continue in the coming weeks,” analysts at WazirX Trade Desk shared in a note.
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Meanwhile, Ethereum has continued to rally, crossing the $1,600 level for the first time in over a month while the total crypto market cap climbed over the $1 trillion level.
“On the daily time frame, the trend for Ethereum has broken out of the descending channel pattern. The next key resistance for Ethereum is expected at $1,740.
“Bitcoin hovered above the US$22,000 level, gaining 5% over the previous day. If the price can fix at that level, we may see a further upward move,” Edul Patel, Co-Founder and CEO of Mudrex, a crypto investing platform, said.
(Cryptos and other virtual digital assets are unregulated in India. They are considered extremely risky for investment. Please consult your financial advisor before making any investment decision)