The jaw of the crypto community dropped on Tuesday. Bitcoin along with nearly every other crypto generated a pump that has not been seen for quite some time. The rally pulled off by most cryptocurrencies shocked many retail investors. This is especially true for crypto enthusiasts who hopped on the bandwagon after the 2017 bull market.
Those who entered the crypto industry before it took off in 2017 know what a true bull market looks like. They say the recent pump takes them back to the good old days of the crypto uptrend.
Tuesday’s pump put many crypto analysts on the edge of their seats. Some altcoins, including one top ten coin, printed astronomical gains. While bitcoin settled for 24-hour gains of above 7%, other large market cap coins such as Ethereum, Litecoin, and EOS spiked over 13%.
The widely-followed CryptoBull quips that the crypto markets feel “just like 2017 again.”
Many others share CryptoBull’s excitement. Crypto Michael said that Tuesday reminded him of the things he loved about trading crypto in 2017: volatility, volume, and adrenaline.
A pseudonymous trader named Galaxy couldn’t believe his eyes. It appears that the analyst wasn’t expecting that crypto would ignite a pump across the board so early in the year.
Before you get euphoric and think history is about to repeat itself, it’s important to note that many analysts are expecting a correction. Bitcoin is already flashing overbought signals and printing short-term toppish patterns. If the king of cryptocurrencies retraces, it’s very likely that other coins will follow suit.
I talked to Nick Hellman, vice president of LearnCrypto.io. He believes that bitcoin will succumb to profit-taking soon. He told CCN.com,
Even most bullish counts a BTC top around $9,200. [It will likely] form another support around $8,400.
Mati Greenspan, founder of Quantum Economics, also spoke about the possibility of bitcoin and altcoins sustaining the rally. He said,
If we do manage to hold these incredible gains, it will be a very bullish sign indeed. As far as Bitcoin is concerned, we were tracking resistance at the 200 day moving average (DMA). Didn’t expect it to start testing it so quickly though.
So far, the top cryptocurrency is respecting the 200 DMA resistance as bulls take a breather. The pullback is something that trader Loma expected. The analyst sees bitcoin dropping to as low as $8,100 before resuming its next leg up. Also, Loma sees bitcoin dragging down other large market cap coins.
All things considered, are we going to experience another 2017-type bull market? I think we need to take it one step at a time. Just like Mati Greenspan said, if bitcoin and large cap coins can retain most of their gains, that’s a step in the right direction. For now, the entire crypto market is showing bullish signals not seen in months.
Disclaimer: The above should not be considered trading advice from CCN.com. The writer owns bitcoin and other cryptocurrencies. He holds investment positions in the coins but does not engage in short-term or day-trading.
Last modified: January 22, 2020 11:38 PM UTC