After months in a downtrend, The cryptocurrency market has again started a cycle of revaluation driven by the rise in the price of Bitcoin (BTC) that has risen more than 25% in the last 25 days.
Following in the wake of BTC, cryptocurrencies like Ethereum (ETH), Binance Coin (BNB), Cardano (ADA), Solana (SOL), Axie Infinity (AXS) among others, they have appreciated more than 70% in the period.
However, after this boom, analysts specializing in cryptocurrencies they wonder if the move has been sustainable or just a relief from the bear market of months ago.
In statements to Cointelegraph Brazil, Ulrik K. Lykke, managing director of the crypto-asset hedge fund, ARK36, He said there appears to be a change in market sentiment compared to a few months ago.
According to him, the narrative on energy consumption in the cryptocurrency market (which helped drive down the price of BTC) has lost steam after various sources argued that the grid actually has good power consumption.
Furthermore, according to the analyst, Bitcoin is making its way into the public domain on many other fronts, such as adoption growth, technology improvements and other similar aspects, which are increasing positive public perception.
“When the price of Bitcoin rises 50% in 19 days or 20% in 6 days, as has happened recently, the crucial thing is to identify if the rise is leveraged or driven by the spot market. That is, if the evolution of pricing is driven by short-term speculators or long-term investors. Currently, large withdrawals of Bitcoin from exchanges and declining liquidity point to the latter, “he said.
Still, according to him, Technically, Bitcoin price still needs to be above $ 50,000 to break out of the bear cycle And fundamentally both the on-chain data and the pure sentiment analysis look positive for now.
“But investors should monitor the situation closely and watch for any signs of a possible reversal of this trend, suggesting that the rise was a dead cat rebound,” he said.
An uptrend was expected
Cardano (ADA), it recently ignored a price drop warning to hit a new all-time high. The ADA / USD pair hit $ 2.56 for the first time on Friday the 20th, following a 154.54% price boom that began on July 20th.
With this, the pair also ignored veteran Peter Brandt’s 60% -90% price drop warning, which was based on a classic bearish pattern called a head and shoulders.
“This Cardano bullishness is linked to the new update of its protocol, which is already in tests, and which will allow the operation of smart contracts, DeFi protocols and decentralized exchanges. Making Cardano a major competitor to Ethereum,” said Marco Castellari, CEO of Brazil Bitcoin, noting that he believes the uptrend may continue.
About Bitcoin, Castellari points out that due to various negative news, coupled with the entry of many newcomers to the market, there was a very strong correction in Bitcoin, which is normal and extremely healthy for the market and it was only a matter of time before prices returned to the previous level.
The Country Manager of SatoshiTango, Guilherme Quintino Ribeiro, for his part, argues that the fall of Bitcoin and its subsequent recovery was what the market expected and that bearish patterns are healthy and fundamental to generate a bull market like the current one.
“The fall is normal and healthy. To those who trust the currency, we recommend doing” hold “, which is known in the world of cryptocurrencies as conserving and maintaining Bitcoin reserves. You have to take into account that the price of BTC moves by segments, so after a fall, its price tends to recover and rise more, “he said.
The climb will take BTC to $ 65,000
Joshua Scigala, co-founder of TheStandard.io, a DeFi infrastructure project that provides a bridge between traditional physical investments and cryptocurrencies, dI tell Cointelegraph Brazil that Bitcoin has been increasingly showing its potential, but its limitations may cause it to be surpassed by Ethereum (ETH).
According to him, Following the successful upgrade of the London hard fork, many people are noticing the fact that ETH is now deflationary rather than infinitely inflationary, which means that more ETH is being burned than is created with each block.
“For the first time, I believe that ETH may be leading and appreciating more than Bitcoin. Normally, Bitcoin is the tide that lifts all the ships of altcoins, but after this update, we could be witnessing a time when Ethereum becomes the tide that lifts Bitcoin and the rest of the market, “he said.
For Ruud Feltkamp, CEO of the Cryptohopper automated trading bot, the similarity to the 2017 bull market is almost unbelievable and Bitcoin should break the $ 65,000 mark soon.
“With the current trend, I expect Bitcoin to hit $ 65,000 soon. Resistance is substantial there, so it will probably see a bounce just like in 2017 and so Bitcoin will swing for a while. Once it gets above $ 65,000, we can say that Bitcoin is back on track to hit its long-awaited target of $ 100,000 this year, “he said.