It’s been less than nine months since traders flipped their calendars to 2018, but crypto asset bulls have aged years (if not decades!) since the holiday season’s euphoria. After peaking at a total market cap above $800B on January 7th, the crypto market has contracted precipitously, briefly falling below $200B earlier this week. Take a look at the chart below.
After a rough start to the week, Asian stocks seem to have found some support as the Turkish Lira steadied below 7 per dollar. Japan’s Nikkei 225 rose 1.8% with all sectors in green territory as the Yen gave up some of yesterday’s gains. Australia’s ASX 200 and the Korean KOSPI also edged higher but gains were limited.
Bitcoin has risen further higher today, climbing for a time above $8350 – its best level since May 21. As a result of the rally, BTC/USD has broken even more short-term resistance levels. This is an indication that the bulls are regaining control, at least in the short term. But whether or not we will see any 2007-style moves remains to be seen.
Gold bulls were offered a temporary lifeline in the form of dollar weakness on Tuesday with prices rebounding toward $1,226 per oz. as of writing. While the yellow metal has scope to venture higher in the near term if the dollar continues to soften, the medium-to-longer term outlook remains tilted to the downside.
We noticed that some of the cryptocurrencies can be completing a big bullish triangle pattern. In 2017, we have seen sharp and impulsive rise in the whole Crypto market, but later in the beginning of 2018 cryptocurrencies began to fall and we noticed that some of them can be approaching the end of a correction soon.
Bitcoin and other cryptocurrencies such as Ethereum and Ripple have risen sharply over the past few days, most notably on Monday and Tuesday. It doesn’t feel like it but Bitcoin has risen nearly 30% from its lowest point in June. Sentiment has been boosted by a number of positive developments including news that BlackRock, the world’s biggest asset management company, is looking to invest in the digital currency.
The price of Bitcoin has fallen below $6,500 to reach its lowest level since Feb. 6. That was a day when it found significant support from around the $6000 mark which led to an eventual recovery to almost $12000 later on in the month. But it doesn’t feel like such a sudden rally will be on the cards again this time. Bitcoin has been trending lower along with other crypto currencies since early March and no end to the bear trend appears to be in sight.