The cryptocurrency market shot up over $10 billion in the past 24 hours on strong volume.
Is this the beginning of a recovery?
As I said before, in the current market it is essential to be wary in this brutal bear market. Any seeming recovery could just be another trap preceding a drop to a new low.
However, the size of this move is definitely a positive sign.
I’m waiting for a push above the $3,800 and $4,000 resistance levels before I comfortably say the trend may be reversing.
Here’s a chart showing key resistance levels:
The red lines are where resistance lies – price points that bitcoin must push through to prove that it’s bullish.
Rather than trying to guess whether or not this latest move is a fake out, I suggest waiting for the chart to tell you.
If bitcoin pushes past $3800 and $4,000, it may be time to start thinking a recovery’s happening.
Bitcoin is trading for $3,621, a gain of almost 20% from previous December lows.
Can bitcoin keep these gains? Here’s hoping. I think me and everyone else is ready for a recovery. This bear run has been insane.
One thing to note is that the volume is less on this move than previous rapid increases. This is another reason to be wary. If you bought at the low, now might be a good time to lock in at least some profits.
Wish I’d bought some while writing the article!
Will we look back and see that this was the moment bitcoin started to recover?
Or is this the start of a multi year long bear run for bitcoin?
Only time will tell.
Fingers crossed, crypto bros!
Will Salisbury is the co-founder of Blockchain Decrypted and full-time cryptocurrency trader. He also hosts the Blockchain Decrypted podcast, and when he's not talking or writing about blockchain technology and cryptos, he likes to play games and relax in his home state of Michigan.
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