It’s certainly not official, but the green shoots of the beginning of a new crypto bull market are beginning to be seen.
The FUDish news has continued to rain down on the crypto sector. We aren’t too long after the FTX implosion, and already another domino, in the shape of crypto lender Genesis, is toppling down.
However, in the midst of the bad news crypto is starting to motor. Bitcoin is currently in fifth gear, and is plunging headlong through resistance after resistance.
The king of the cryptocurrencies put on a spurt earlier this morning and attained a price of $23,300 before pulling back to currently sit at around $22,700. The bull flag it was in was broken to the upside, which was less likely considering that the flag was slanted upwards, instead of the more typical downwards slant.
$24,000 to $25,000 now beckons – a resistance area that is incredibly important, given that a consolidation above this could see Bitcoin magnetically pulled upwards to the next resistance at $30,000.
Such heights just couldn’t have been envisaged only 3 or 4 weeks ago, as Bitcoin scraped along a local bottom and seemed as though it might take a further plunge down to the next $14,000 support.
It does make sense though, that when the entire world was screaming for Bitcoin and crypto to come crashing down and find new lows in a bear market that would just drag on for years, that the market would do the exact opposite.
Many analysts point to the fairly rapid softening of inflation as a reason for the crypto market surge, and this might have something to do with it. However, the charts across the entire crypto market were looking extremely oversold, and it had got to the point where breakouts were only a short time away.
Retail investors sitting on the sidelines with any cash may well have piled in, in the hope of at least making something in a year that many have said will be recessionary.
Of course, Bitcoin really isn’t about this. Those who are just after a quick buck just might get their fingers burned when the correction finally does come.
But for those who just wish to have a part of their portfolio outside of the fiat monetary system, and in something that has scarcity and is actual hard money, then Bitcoin is one of the only assets to be in for the longer haul.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.