Crypto Bulls Definitely on Parade, Bitcoin Is Attracting ‘Very Substantial Buying Power’
- After 2019’s choppy recovery, the crypto market is now “launching what could be a far more sustainable bull market”
- Mid-cap cryptos showing more strength than the Bitcoin-dominated large-cap cryptos index
- Bitcoin performance attracting “very substantial buying power,” and surge in the absence of political catalysts is a “healthy sign”
In 2018, the crypto market went through a long brutal bear winter. Last year, we managed to recover from some of those losses by seeing the gains of about 85%.
After the choppy recovery of Bitcoin in 2019, the crypto market is now according to Weiss Crypto Ratings, an independent crypto ratings provider “launching what could be a far more sustainable bull market.”
Juan M. Villaverde of Weiss Ratings points out signs in three places that reflect “Crypto Bulls on Parade.”
- Breadth in terms of all price indexes jumping by double digits and showing momentum is the first one.
- The second sign is seen in the confirmation and reconfirmation of an 80-day Bitcoin cycle that consistently helped pick critical bottoms.
- And lastly, since hitting the last 80-day-cycle lows, Bitcoin is up 35% and altcoins by 53%.
Greater strength, however, is seen in leading altcoins including Bitcoin Cash, Bitcoin SV, Ethereum Classic, and Dash. However, it is the mid-cap cryptocurrencies that are showing even more strength as Weiss’ mid-cap crypto index is up a whopping 43.7% in comparison to Bitcoin dominated large-cap’s 18.04% surge.
Small caps meanwhile aren’t getting much attention from investors even in a very bullish week, up only 15.96% the index is underperforming.
What to Expect Going Forward?
Given the fact that “it takes a heck of a lot more money to move Bitcoin than any other crypto asset,” and the world’s leading digital currency is recording over $1 billion in trading volume, this means it is attracting “very substantial buying power.”
Another positive sign is that last week Bitcoin surged in the absence of geopolitical catalysts, China’s announcement that it’s “all in on blockchain” and the fear of a US-Iran war. Bitcoin’s surge without these kinds of price boosters, Weiss Ratings says is a “healthy sign.”
More importantly, there are not a few outliers that are leading the market rather the “rally is broad-based.”
All of this good news but Juan feels we are still not 100% out of the woods yet. And to confirm the bull run, most cryptocurrencies need to cross significant resistance levels.
“The bulls are definitely on parade. They just need another week or two to cleanly break out to the upside.”