What is a crypto bull market?The crypto market moves in cycles. Typically, every four years, the market will enter a bull run and reach all-time high prices. A bull market is when most buyers are confident in the market and purchase cryptos. The demand is more significant than supply during this time which means that investors are “bullish” that the price will increase.
A bull market is followed by a two- or three-year bear market which can see the price of Bitcoin retrace or correct, by up to 80%.
Is the crypto bull run over?On 29 December 2017, the price of Bitcoin had already reached its peak at $20 000 and was trading at about $14 700. Investors sold their Bitcoin for altcoins and the market saw altcoins reach new all-time highs over the period of Christmas and New Year’s. When comparing the 2017 Bitcoin chart to the current Bitcoin chart, one cannot help but wonder if the bull run is over? Bitcoin has already retraced by 30%.
Various expert crypto analysts on Twitter and YouTube say the bull run is in fact not over. To the contrary, investors have a second chance to stock up on their favourite cryptos on AltCoinTrader in anticipation of the next leg up that is expected to occur in the short term.
What do the charts say?People have made some wild predictions about the current bull run and it is difficult to know who to believe. Hence, chart analysis comes into play.
If we take a look at the Bitcoin chart, since Bitcoin is the still the market leader and therefore greatly determines what the rest of the market will do.
Bitcoin bottomed out at $42 000 a couple of days ago but remains above the 200 Day Moving Average line on the 1-day chart. The 200 day-Moving Average is known as the bull market support band. As long as the price closes above this line, an uptrend is sure to resume in the near future.
The RSI on AltCoinTrader shows that the bearish/downwards trend is nearly over. After reaching a high of $68 000, the Bitcoin RSI entered a bearish trend. The price is nearly in oversold territory which means that a pump is sure to follow. In the past, when a coin gets to a point of being oversold, it is preceded by a pump.
The Stochastic RSI on AltCoinTrader on the weekly chart, shows a similar scenario. A major uptrend into new highs is expected.
Market sentiment plays an important role in determining the market direction. The cryptocurrency Fear & Greed Index fell to 27 a couple of days ago. It currently stands at 41. This indicates that the market is still in a fear territory and signals a solid buying opportunity. Remember the golden rule, when the market is fearful, it is a buying opportunity.
The Ethereum chart is similar to that of Bitcoin and the same analysis apply.
In conclusion, now is the perfect time to buy that crypto you’ve been dying to add to your portfolio in anticipation of the next leg up. The “buy the dip” opportunity you’ve been waiting for is here. AltCoinTrader has a variety of reputable cryptos and recently added Solana to the exchange.