Has the bottom been formed in the crypotocurrency market??
With the increased volatility in the cryptocurrency marketplace, I've decided to hop back into blogging! Despite the persistence of the cryptocurrency bear market, there are quite a few positive indicators that the bottom could be forming!
After spending a good portion of the year trading around the support level of $6,000, bitcoin made another leg lower last month. Bitcoin quickly dropped below the $6,000 and $5,000 support levels, and slowly drifted down to the $3,000 support level. Despite the substantial drop in the markets over the last couple months, there are a couple positive developments! Firstly, the volume in the cryptocurrency marketplace has remained high. Trading volume is an extremely important indicator for the health of cryptocurrency, because it shows that people still want to invest, trade, and use the underlying currency. Secondly, Bitcoin rallied off of the $3,000 support level on high volume! The market appears to be making a stand at these levels, and it could result in the end of the bear market!
Bitcoin broke out of the downtrend, and has bounced 10% from the lows! This strength in Bitcoin has translated to a breakout in the broader markets!
Only time will tell if this rally will continue, but there are several factors pointing to improving cryptocurrency markets in the near future. This could be a fantastic entry point if there were any coins you were waiting for the market to bottom before buying! Good luck and happy trading!