The market showcased a similar growth in the cryptocurrency price which were recorded during the bull run in early 2021. The Bitcoin Price spiked above $33000 for some time, while altcoins like MATIC price registered a 30% jump and the Dogecoin price surged nearly 20%.
However, the price yet again slipped from daily highs as selling pressure accumulated with a slight jump. Leaving the crypto space sceptical whether the market has flipped the bearish divergence or the spike was just an outcome of the B-Word Event.
The crypto space rallied for more than 160 days straight that began during December 2020 and marked its peak in May 2021. Further after the mid-may crash, most of the assets experienced more than 50% dump. The market capitalization also dropped to almost half as the market collapsed and maintained a downtrend for nearly 70 days.
Therefore, the portfolios that suffered a 75% to 80% loss amid the market sell-off, have recovered only 15%. And interestingly a fresh sell-off has also lowered the recovery rate to some extent. Therefore, little hard to analyse whether the crypto-markets have flipped the bears or no.
When Can Cryptocurrency Price Rally Be Validated?
As the crypto market was losing the plot and depleting with heavy numbers, many attempts to uplift the price failed. Yet each time, the jump was only for a short period of time. And hence the traders who entered during the sell-offs have suffered extreme losses.
Therefore it’s highly important to analyse whether the current spike can be confirmed as an uptrend or just a periodical jump. Each and every asset have their respective strong resistance level, which was rejected multiple times when attempted to rise high. Like the BTC price resistance levels lies at $35K and ETH price at $2800. Therefore the assets need to smash these levels and sustain in order to validate an uptrend.
However, a bull run can be confirmed when the price is just 10% to 15% short of its all-time high. No doubt the cryptocurrency price has undergone a notable change yet a massive jump is required to flip the bears completely.