Sentiment on the crypto market has been changing of recent as market capitalization moves from $131 billion to $137 billion. Also, the surge in the value of Ethereum, Enjin coin, and Litecoin cryptocurrencies has also impacted the change in sentiment. However, this is still not enough to guarantee that the bearish trend is over according to a cryptocurrency analyst.
$4,600 Mark Is Key For Bullish Trend
A technical analyst, Donalt noted recently that the crypto market had found a new optimism which he considered as the primary cause of the recent spike of the Ethereum cryptocurrency. However, this does not mean that the winter market is over according to him. Donalt thinks that until Bitcoin price trades above the $4,600 mark, moves towards $5,000 and $6,000, it is difficult to conclude that the bear market is over.
In addition, there has been a surge in the value of Litecoin and Enjin Coin against both Bitcoin and the U.S. dollar in the range of 20 and 100 percent. The volume of Bitcoin has also increased to $11 billion recently as increase in trading volume was also recorded. However, the value of Bitcoin still ranges between $3,800 and $4,000.
Despite the changes in the crypto market, Donalt explained in his words that “Volume isn’t what will convince me that the bear market is over, a bullish market structure along with a break of at least $4.6k (Favorably $6k) is. It’s interesting that we’ve had so many altcoin pumps while the general market cap hasn’t really changed. That makes me think there is very little new money coming in.”
The Bulls Gradually Surfacing
Though Donalt views that there is a need for Bitcoin to break the $4,600 mark before concluding that the bearish trend is over, he still thinks the value of Bitcoin is moving in the bullish direction due to the price movement of most cryptocurrencies.
Also, though CBOE reportedly drops Bitcoin future in the short term due to lack of volume, Donalt noted that lack of volume is only reflected on CBOE’s Bitcoin future and not on other future products. He concluded by stating that he is personally very optimistic that the crypto market is moving on a macro scale in general as the market is trying to change direction. However, this might take a while according to him.