The cryptocurrency market appears to be making a recovery as the prices of several altcoins surged by double-digit percentages in the past few weeks. The price of bitcoin, the world’s most dominant cryptocurrency, also appears to be in recovery mode as it’s currently trading above the $4,100 mark – according to CryptoCompare data.
According to prominent crypto trader and investor, Alex Kruger, the cryptocurrency bear market “has been over for three months now.” Kruger has also predicted that if bitcoin manages to break past $4,200, then it could potentially “mark the end of the bear trend that started in January 2018.”
Kruger: Bearish Trend Could End If BTC Surpasses $4,200
Kruger further clarified that his statements regarding bitcoin’s price was “not a call.” He explained that from strictly a technical standpoint, the price movements that are considered “bearish” (which began in early 2018) should end if BTC surges past $4,200.
This is not a call. Not a matter of ageing well or not.
A break above 4200 technically ends the bear trend that started Jan 2018. Facts don’t care about opinions.
If strong selling resumes later on, that would represent a different trend. pic.twitter.com/vPXepUGJoW
— Alex Krüger (@krugermacro) March 29, 2019
Meanwhile, Crypto Cohort, which provides “in-depth cryptocurrency market analysis,” has noted in a blog post, published on March 30, that bitcoin has failed to break key resistance levels of between $4,000 to $4,200. This, despite bitcoin recently recording the highest 24-hour trading volume, of over $30 billion, in the past nine months.
As confirmed in Crypto Cohort’s post, historical data suggests that “there has always been a correlation/cycle between an alt-season,” or when altcoin prices are surging, and the “relatively sideways BTC price action.” This, “as traders are constantly moving their funds” to trade or enter positions in seemingly “promising” altcoins, the post stated.
Altcoins Market Cap Dominance Keeps Rising
Available data also shows that “altcoins market cap dominance” (the top 60 cryptocurrencies by market cap, except for BTC) has been increasing steadily over the past three months as it has gone from around 19.5% to around 22%, Crypto Cohort noted. Acknowledging that the increase in altcoin dominance might appear to be quite moderate, the analysis indicates that “the highest market cap dominance of all-time for altcoins” was only of about 26%.
Moreover, this figure had “hovered between 23 to 26%” towards the end of 2017 and early 2018 – when digital asset prices recorded their all-time highs. Further examining the data for the top 60 cryptos by market cap, Crypto Cohort found that 30.4% of these altcoins had “reached [their] all-time low prices” around Q4 2018 and Q1 2019.
Altcoin Movements Suggest “Possible Reversion In Overall Market Sentiment”
Notably, in this same time period, 58.3% of altcoins “also broke through” and remained above their respective 100 day moving averages (MA).
The crypto market research group’s report also revealed that these altcoins continued to stay above the critical 100 day MA for “more than 21 days.” This, Crypto Cohort believes is “significant” because it has essentially “created higher lows ever since … indicating a possible reversion in the overall market sentiment.”