The last 24 hours or so have seen the Cryptocurrencies come alive, trading in a much wider range than we gotten used to seeing in recent months. If anything, the sustained gains today in digital assets are signalling towards some kind of Crypto spring returning to the financial markets and if this happens it would be perfect timing since the Spring is in the air as well. The news of institutional investors support, adoption of digital assets in financial markets & favorable regulations have all been making rounds recently but the price action in Cryptos wasn’t validating any of this. The move came around 4 am Tuesday morning Eastern Time U.S/Canada & within an hour almost all digital assets were posting double-digit gains. There was no apparent catalyst.
Although we have seen rebounds like this before too but most of them couldn’t sustain the rally, but this time it looks a little different if you look at the charts. This moves strengthens the case of a bottoming since some key daily levels have been breached on the daily charts as well which dictate the longer term trends. The Market cap has jumped almost $50 billion in the past week alone to $172 billion at the time of writing with the BTC dominance dwindling to 50.3% – For those of who are not aware of the relationship, BTC dominance falls when the bullish market returns to Cryptos as investors tend to favor the riskier Alt.coins over the Crypto kingpin Bitcoin.
The gains recorded earlier by Crypto assets have not only sustained themselves but built on them throughout the day today. The breach of the psychological $5K level by Bitcoin is a pretty significant event. To visualize the moves, we are going to look at the hourly (Short term, right side) & Daily (Medium term, left side) charts of the Top 6 Cryptocurrencies. The biggest upswing was seen in Bitcoin Cash which was up 65% at one point.
EOS (EOS) – MT neutral, ST bullish
Bitcoin Cash (BCH) – MT neutral, ST bullish
Looking at the charts, you can clearly see how Cryptos have built on their double-digit gains – numbers in hourly charts on the right. BTC has comfortably flipped the MT bearish trend to neutral as most of the other Alt. coins have followed suit. Ripple & Ethereum still need to break the MT resistance to convincingly flip their MT bearish bias, but they look pretty comfortably bullish in the hourly charts. Having said all this, we are all too familiar with the volatility & unpredictability of the Cryptos – this move up looks a little more convincing considering the percentage gains, technical levels & the prolonged bearish market preceding this. Let’s keep our fingers crossed… and before I sign out, here’s a look at the build up on the gains in the past 24 hours.