Crypto Tokens Enjin, ICON Soar 20% but Bitcoin Remains Woefully Stable
Enjin Coin has seen a remarkable boost in value following its assocation with Samsung's crypto wallet. | Source: Shutterstock
Throughout the past several days, Bitcoin has remained relatively stable at $3,900. The stability of BTC has led crypto tokens to record massive spikes in the range of 10 to 100 percent.
Enjin Coin, for instance, the native cryptocurrency of a gaming-focused blockchain network called Enjin, surged by 100 percent at its daily peak following its partnership with Samsung.
ICON, the most valuable blockchain project in South Korea, recorded a 15 percent gain within a 24-hour span.
Alternative cryptocurrencies tend to perform strongly when Bitcoin demonstrates stability but are the recent price movements of the crypto market sustainable?
Bitcoin Isn’t Moving
Since February 7, for over a month, Bitcoin has remained in a tight range from $3,600 to $3,900.
Despite its break out above the $4,000 resistance level, Bitcoin has not been able to move higher in the $4,000 region and recover to the $5,000 to $6,000 range, which several traders have emphasized is crucial for the long-term recovery of the asset.
“Still a beautiful chart. If bitcoin can’t bounce to at least $5k – $6k soon, it’s a really bad sign for the cyberbulls. And if it breaks down thru the yellow line at any point, even the HODLers need to GTFO,” former International Monetary Fund (IMF) economist Mark Dow said.
While Bitcoin has barely moved in the past month, economist Alex Krüger stated that Bitcoin has recorded two higher lows in a short time frame for the first time since January.
Momentum is key for Bitcoin to rebound in the upcoming weeks and consecutive higher lows, which essentially refers to net gains, could be crucial for the asset to break out of an extended period of low volatility.
A sideways Bitcoin market often benefits tokens and low market cap cryptocurrencies. But, alternative cryptocurrencies tend to follow the price movement of Bitcoin in an intensified manner.
If Bitcoin struggles to recover beyond the $4,000 level in the near-term, it may lead investors to lose confidence in the short-term performance of the cryptocurrency market.
At this juncture, a downside price movement of Bitcoin, which remains unlikely due to the momentum of the crypto market, could still result in large losses for both major crypto assets and small market cap cryptocurrencies.
But, traders who previously considered the recent price movement of the cryptocurrency market to be a bull trap have become more optimistic in recent weeks.
“ETH is one of the many reasons I gave up on being net short: zooming out, it looks like a potential bear-trap below an obvious liquidity pool. Also, BTC bull-flag, POC configuration choppy, big orders stacked both sides of the books, etc. In brief, I don’t see my edge anymore,” one trader said .
Fundamentals Intact
On March 8, eToro, one of the largest brokerage and cryptocurrency trading platforms in the global market, added crypto trading options across 32 states in the U.S., aggressively expanding its cryptocurrency venture deep in the bear market.
The billionaire founder and CEO of Twitter and Square Jack Dorsey revealed that he purchased a cryptocurrency hardware wallet called Trezor with Bitcoin on the Square Cash app, reaffirming his support for Bitcoin once again.
The change in sentiment in the cryptocurrency market combined with strong fundamental factors, rapid price movements of alternative cryptocurrencies, and positive media coverage could continue to fuel the momentum of the crypto market in the near-term.
Anthony Pompliano, the co-founder and partner of Morgan Creek Digital, also predicted more public pension funds in the U.S. to begin investing in the cryptocurrency market, which could increase in the inflow of capital in a larger time frame.
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