Crypto Market To Enter Second Phase of Bearish Trend! Here’s What Traders Can Expect!
The crypto market turmoil has affected several blockchain projects, crypto-based firms, and potential investors, leading to layoffs, resignation, and stopping further expansion. This crypto winter is the fifth historic crypto bear market which began in November 2020 and pushed all cryptocurrencies to the bottom line in the price graph.
The crypto market has been trading sideways due to the impact of some macro factors. However, the last 24-hour price charts of leading crypto projects have brought a ray of hope to investors, but it may sustain for a short span of time.
A Positive Move In The Last 24 Hour
Top leading crypto projects have gained positive momentum in the last 24-hour price graph. Bitcoin has crossed its crucial price level of $20K and gained over 0.75% uptrend. According to CoinMarketCap, Bitcoin is currently trading near $20.3K with an intraday high of $20,456.
It seems that the bullish rally has spread over several coins, including Ethereum, as ETH has surpassed its $1,350 level and is currently trading near $1,371 with an uptrend of 1.61% in the last 24-hour. Popular meme coin DOGE has witnessed a tremendous uptrend as it rose to $0.065 from $0.059 in the last three days, indicating a strong bullish momentum in the crypto market.
Furthermore, Ripple’s native token XRP has bounced back to the North as it is trading at $0.5 with a positive gain of nearly 2% in the last 24 hours.
Crypto Market Stability Is In Fear!
Despite the positive price action in the crypto market, crypto strategists and analysts predict a price bottom soon as the upward momentum is unstable and can quickly fall to the ground.
Michael van de Poppe, CEO of Eight Global and a prominent crypto analyst, predicts that the crypto market may soon have a downturn following the US dollar rally. Moreover, the data on US unemployment will be published on Friday, and Poppe thinks any negative data can create a bearish sentiment in the market. According to him, these are macro factors that will have a significant impact on the crypto market.
Following the bear market, it is clear that even microeconomic factors play a leading role in the price action of the crypto market, establishing a correlation between the world economy and the crypto sphere. The US Fed’s interest rate hike, inflation data, and regulations create fear in the stability of the crypto market.
However, it is anticipated that the crypto market will moon soon following the positive sentiments as it has become mainstream in the era of digitalization. Despite the crypto winter in 2018, the crypto market recovered and gained over 2500% in market capitalization.Source