The beginning of 2018 was a tough period for crypto investors as valuation melted like snow under the sun.
As a reminder, the total market capitalisation of the crypto market hit $244bn in early April, a drop of more $584bn from January's all-time high of $828bn. Over the last couple of weeks, most cryptocurrencies trod waters as investors waited for a signal that would indicates the end of the bear market.
Despite the lack of significant news in the crypto space, the entire market rallied sharply last Thursday with the global market capitalisation rising $52bn in a few hours to $323bn. Even now there is no apparent reason for such a move, there are rumours that institutional money is finally moving into the crypto-market, together with speculations that the SEC could allow the listing of Bitcoin ETFs. Bitcoin rose more $1,100 in less than an hour, moving above the $8,000 threshold for the first time since March 28, and dragged the entire market with it. Over the last two days of the week, Ethereum increased more than 26% to $520, NEO rose 20% to $67, NANO surged 32% to $6.70, while Bitcoin Cash hit $763, up 16.5%.
However, even though we remain bullish crypto, regulatory uncertainties will continue to weigh on cryptos and will keep most of institutional money on the sidelines. It is therefore the right time to enter the market.
From a technical standpoint, BTC has broken its 200dma (currently at $7,848) to the upside. A break of the 50dma, which currently lies at $8,772, should validate a bullish reversal. On the upside, the nearest resistance lies at $9,173 (high from March 21), while on the downside, the low from April 6 will act as support.
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