Bitcoin will likely heave a sigh of relief at the current state of the market. In the last 24 hours, BTC has surged back above $6,500 as the total market capitalization has risen to more than $212 billion.
Bitcoin Back Above $6,500
At press time, BTC was looking set to break the $6,600-mark, trading at $6,581. The top-ranked cryptocurrency seemed doomed to fall below $5,000 after a miserable run since the start of August. Bitcoin has gained more than eight percent in the last 24 hours.
According to eToro senior analyst, Mati Greenspan, the risen for today’s rally can be attributed to a fresh wave of buy-ins. Greenspan opined that once the BTC price fell below $6,000 and seemed destined to test $5,000, more people were incentivized to buy the crypto.
The eToro senior analyst also allayed fears of a crisis saying price fluctuations were a given between $5,000 and $8,000. According to Greenspan:
The range we’ve been watching on bitcoin has been holding rather well. Since the beginning of the year, we’ve seen buyers stepping in about halfway through the $5K handle, which is approximately what analysts estimate is the cost to mine bitcoin.
Ethereum and Other Altcoins Post Massive Price Gains
At the time of writing this article, no coin in the top 100 ranking has a negative 24-hour price change on Coinmarketcap. Ethereum, the second-ranked cryptocurrency is marginally back above the $300 price mark. The price of ETH had briefly slipped below $300 for the first time since November 2017.
ETH leads the way in the top ten coins, increasing by 16 percent as at press time. Other significant gains include XRP – 15 percent, Litecoin – 14 percent, and EOS – 12 percent. Nano, the 43rd-ranked cryptocurrency is the top gainer in the top 100 coins, increasing by 47 percent.
The situation observed today is a pointer to the fact that the market is still closely correlated. Investors going long on Bitcoin sparked a revival in not only the price of BTC but in the market as well. Bitcoin still maintains an over 50 percent dominance of the market which means that it is still the preferred choice of cryptocurrency investors.
Do you think the current cash injection will drive the price of Bitcoin above the $7,000 mark? Keep the conversation going in the comment section below.
Are The Bitcoin Bulls Back? Brian Kelly Weighs In?
As reported by Crypto ICO Report, the cryptocurrency market has been on a surprising tear over the past 24 hours, with a majority of Crypto Gambling assets posting gains of upwards of 6-7%. At the time of writing, Bitcoin stands at $6,400 after a brief step over the $6,500 line, while a majority of altcoins have seen a return of upwards of 5%. Some altcoins, like Nano, have had an astounding day, with bulls pushing the price of the cryptocurrency up by 25% or more.
Although the cryptocurrency market may have been on thin ice before this recovery, the ice isn’t so thin now, with Bitcoin establishing lines of support at higher lows.
Kelly opened up his section calling the market’s price action a “wild ride,” alluding the trials and tribulations the market has faced over the past few weeks. The analyst went on to draw attention to the performance of BTC before, during, and after the expiry of CBoE-based Bitcoin futures. According to statistics which CNBC has attributed to Justin Stanislaw, Bitcoin often does poorly in the days leading up to an expiry date, but sees a 10% move upwards in the week following a futures expiry.
Likening today’s expiry to a similar occurrence, Kelly noted that following the April futures expiry, Bitcoin saw a 20% gain in a mere 6 days. While not explicitly stating it, it’s clear to see that founder of the crypto-centric BKCM fund is expecting for Bitcoin to continue to experience positive bouts price action over the next few days.
To add fuel to the metaphorical bullish flame, Kelly, who has become a near-notorious permabull, added that Bitcoin may be undergoing a short squeeze, as shorts cover their losses in this potential trend reversal.
This sentiment sparked a question from another CNBC panelists, who asked if “these other cryptocurrencies” will bottom out along with Bitcoin. Kelly responded, stating:
They (altcoins) are still quite correlated (with Bitcoin). Over the last 60 days or so, Bitcoin has really been the leader — a lot of that had to do with the speculation about an ETF. But what you did see today is stuff like Ethereum almost 10% off yesterday’s lows, stuff like Stellar Lumens — still holding up quite well. So yes, if you get a 10 or 15 percent run on Bitcoin on a short squeeze, it should bring everything else back up.
So as is normally the case, it is likely that if Bitcoin runs, so will a majority of altcins, albeit with some variance in either the bullish or bearish direction.
However, some had their doubts, including CNBC trader Dan Nathan, who queried Kelly on if the capitulation phase of the market has “petered out.” Turning the question somewhat on its head, the cryptocurrency bull noted that $5,900 may prove to be a level of support if a sell-off continues. Nonetheless, it seems that with this episode of CNBC Fast Money passing by, Kelly remains as bullish as ever.
While some were quick to cast Wednesday’s bout of positive price action aside, calling it a classic bull trap, there are some optimists who are convinced that this might be the beginning of the end of the crypto bears.