Will the Bitcoin rally be confirmed soon? At present, many investors or analysts still remain skeptical about the short term of Bitcoin.
With Bitcoin briefly touching $23,000 on July 18, and Ethereum sitting well above $1,500, is part of the market getting too excited?
After three days of trading in the green for altcoins, and high-flying performances for some of them (Matic, Avalanche or even Ethereum), a positive momentum is taking hold of the market.
Meanwhile, for the first time in 73 days, investor sentiment moved out of “extreme fear” and is now in “fear” according to the crypto Fear and Greed Index. Indeed, while yesterday was still a record day for the index with 72 consecutive days “closed” in extreme fear, the market regained color. On the day yesterday, the score was 30. It remains to be seen whether the market sentiment will emerge strengthened from today’s day, which is currently synonymous with consolidation. As a reminder, to find a score in neutrality or in the green (Greed), or above 46 points, you have to go back to April 5 and the 53 points marked by the index.
A market again above the billion in terms of market capitalization
While many rebounds have taken place during Bitcoin’s descent into hell, a positive signal accompanies that of this weekend. Indeed, the market capitalization of the entire market has just gained several tens of millions over the past few weeks and is earning at levels above one billion. However, analysts/youtubers with almost half a million subscribers are rather pessimistic about the recent Bitcoin pump and urged to be wary, or to stay out of the market for now. Some do not hesitate in particular to qualify the recent pump as a “scam pump”.
To pay Capo of Crypto, the main technical indicators are still bearish and he does not share the positive sentiment that is gradually starting to take hold of the market. It thus remains attentive to the next drop in Bitcoin, before entering the market again.
It is true that even if Ethereum surprised this weekend and that many altcoins dominated the trend, Bitcoin only reacted timidly and beyond its increase on Monday, no significant progress can be made. its active at the moment. Especially since the difficult macroeconomic conditions allow to put pressure on Bitcoin, while the dollar continues to reach new highs.
The inverse dollar charter being to that of Bitcoin, it is necessary for the BTC that the US currency loses its value. Indeed, while the digital asset is experiencing (sometimes significant) rebounds, none of the main trend-changing macroeconomic factors (dollar, US indices, inflation, war…).
Bitcoin, Ethereum and the other altcoins could very well crash again and lose their current levels. It is important to remain cautious, especially when the market wants to play us. However, it is still too early to predict how long the market will remain in the green and if the crypto winter is actually behind us.
All information on our website is published in good faith and for general information purposes only. Any action taken by the reader based on information found on our website is entirely at their own risk.