The virtual currency market has been in a downtrend since the beginning of 2018. Some cryptocurrencies have lost more than 95% of their value, and many investors left the market trying to avoid further losses. However, there is a cryptocurrency analyst that believes that the market is starting a new breakout.
During the last months, Bitcoin (BTC) has been operating relatively stable compared to the first part of the year. But Crypt Rand, a cryptocurrency analyst and trader, said on Twitter that there has been a breakout in linear and log scales.
Overview of #CryptoCurrencies market cap in both Log & Linear scale.
Showing a clear breakout in both perspectives.
— Crypto Rand (@crypto_rand) November 5, 2018
In another Tweet, he said that there are ‘bright days ahead’ and he recommended users to stay tuned to the next price movements in the cryptocurrency space. It seems that the bear market may be coming to an end.
The Bloomberg analyst, Vildana Harjic, thinks in a very similar way as Rand. She said that it is very important to pay attention to the Directional Movement Index (DMI). Apparently, the DMI is showing a higher Bitcoin for the next weeks. The DMI shows the strength os a specific asset.
After several months of low volatility and bearish sentiment in the market, indicators are showing that the market could soon bottom and experience a new bull moment.
There are different things that could help the market become bullish in the near future. One of these things is the Bakkt platform, powered by the Intercontinental Exchange (ICE). This platform will be offering regulated and compliant services for institutional and wealthy investors that want to enter the cryptocurrency market.
Additionally, Fidelity Digital Asset Services is also working in order to offer crypto related products to institutions. Both the ICE and Fidelity will allow new investors to enter the market and purchase virtual currencies such as Bitcoin. This new influx of money to the market could have a very positive effect on the price of the most valuable virtual currency in the world.
Another thing to take into account for the future is the approval of the first Bitcoin exchange-traded fund (ETF). The U.S. Securities and Exchange Commission (SEC) might soon approve this Bitcoin ETF and allow other interested and recognized investors to place their funds in the crypto market.
Bitcoin is currently being traded above $6,500 dollars. Remaining in this price level could be a positive sign for investors that are planning to invest in BTC.