The crypto market has begun to demonstrate signs of new momentum as slightly recovered to over $5,200 and other major crypto assets like and recorded large gains on the day.
According to trader Jonny Moe, is close to breaking the 200-day simple moving average (SMA) cross for the first time since October 2015.
The performance of the price in the past three months (source: coinmarketcap.com)
SMA is considered as a key technical indicator to determine the long-term trend of an asset or a market.
Are bitcoin and Crypto Looking Toward Accumulation Phase?
After broke out of the 200-day SMA cross in 2015, it went on to experience a prolonged accumulation phase.
From October 2015 to December 2017, the price increased from around $250 to $20,000, by 7,900 percent.
The trader
“ about to have its first bullish 20-200 SMA cross since Oct 2015. Note that it took 2 of these crosses before the uptrend began. I’m not usually one to try and call out absolutes like ‘the bottom is in, but it’s certainly shaping up like that could be a real possibility.”
Other indicators such as volume have also shown strong demand from investors in the global market for in recent weeks.
On Tuesday, Bloomberg that the volume of the CME futures market hit a record high on April 4 at 22,542 contracts worth about $542 million.
CCN that the futures volume is important to consider when evaluating the general trend of the market because it accounts for a relatively large portion of the volume of .
With real volumes on the rise, disregarding most of the volume in the exchange market, and long-term technical indicators such as the 200-day SMA cross portraying a rather positive medium-term trend for , many traders remain optimistic on the recent price movement of crypto assets.
Strong Gains on the Day
As rebounded to $5,200, surpassed $180, recorded a 6 percent gain, and Coin increased by about 2.8 percent, demonstrating solid gains against the U.S. dollar.
The short-term recovery in the prices of crypto assets led the valuation of funds to rebound, allowing Grayscale’s assets under management to surpass $1.2 billion.
4/9/19 UPDATE: Holdings per share and net assets under management for our investment products
Total AUM: $1.2 billion
— Grayscale (@GrayscaleInvest)
Although the near-term performance of and the rest of the market largely depend on the materialization of strong enough stimuli to push the market up in a similar manner as April 1, analysts remain optimistic on the positive technical indicators.
Technical analyst Josh Rager said that the exponential moving average (EMA) of turned green or positive for the first time in 16 months.
SuperGuppy shows confirmed uptrend
I don’t always guppy but when I do… it’s a thing of watching these EMAs turn blue and green for the first time in 16 months
— Josh Rager 📈 (@Josh_Rager)
Can the Momentum be Sustained?
In the past month, the price has increased by around 20 percent against the U.S. dollar and as such, some believe that the dominant may be overbought.
It remains to be seen whether the momentum of the market can be sustained over the next several months or if a prolonged period of stability could emerge.
But, if alternative such as , , and continue to demonstrate fairly large gains against both and the U.S. dollar, it could continue to fuel the confidence of investors.
Click for a real-time price chart.
Published at Wed, 10 Apr 2019 10:14:16 +0000
