During the past weekend all digital currencies They fell in value: Bitcoin today is trading at $ 47.931.67 and In the last 24 hours, the price variation of the digital currency was -1.111%.
On the platform for buying and selling cryptocurrencies Gravel, BTC today reaches the value of $ 8,870,699 in pesos for the purchase and 8,461,663.85 for the sale, with a variation of -1.86%. It should be noted that this new value is tied to that of the parallel dollar in Argentina.
After months in a downtrend, the market for cryptocurrencies has started a revaluation cycle driven by the rise in the price of Bitcoin (BTC) which 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), Solarium (SUN), Axie Infinity (AXS) among others have appreciated more than 70% in the period.
However, after this boom, cryptocurrency analysts 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, ARK36He said there appears to be a change in market sentiment compared to a few months ago.
According to him, the narrative about energy consumption in the cryptocurrency market (which helped lower the price of BTC) has lost steam after several sources argued that the network actually has good energy consumption.
In addition, according to the analyst, Bitcoin is making its way into the public domain on many other fronts, such as adoption growth, technological 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.
For experts, the latest bitcoin movements predict a recovery from the uptrend
Still, according to him, technically, the price of Bitcoin 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), 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.
In doing so, 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 bullish of Cardano is linked to the new update of its protocol, which is already in tests, and that will allow to operate smart contracts, DeFi protocols and decentralized exchanges. Making Cardano a major competitor of Ethereum,” he said Marco Castellari, CEO of Brazil Bitcoin, noting that he believes the uptrend may continue.
On Bitcoin, Castellari points out that due to various negative news, added to 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 that it was only a matter of time to prices to return 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.
Bitcoin’s rise would also fuel a bull cycle among altcoins