Bitcoin Rally As Altcoins Turn Green, Pushes Market Above $1 Trillion Threshold


After strong double-digit weekly gains from Bitcoin and a number of other large-cap cryptocurrencies, the cryptocurrency market cap has crossed $1 trillion.

The $1 trillion market has been crossed again

For the first time since June 13, significant gains on Monday in both bitcoin and ether helped push the cryptocurrency market cap beyond the $1 trillion mark.

The largest cryptocurrency reached its highest price since the sale in mid-June, which saw the price of Bitcoin drop from $30,000 to $18,000, and it has surged 5 percent in the past 24 hours to $22,300.

During the late 2017 Bitcoin bull run, this same level served as a strong resistance area, and in technical analysis, old resistance usually turns into new support (and vice versa).

Bitcoin

Crypto market cap above $1 trillion threshold. Source: TradingView

For crypto investors, Monday’s earnings should come as a relief after the previous nine months had seen them grapple with a terrible bear market. As a result of the prolonged bear market for cryptocurrencies, $2 trillion has been lost in market value, and several crypto companies have gone bankrupt, including Celsius, Voyager Digital and Three Arrows Capital.

Despite analyst predictions that the Federal Reserve will raise interest rates by at least 75 basis points at the FOMC meeting on July 27, traditional markets were slightly higher on a day when cryptocurrencies are generally in the black.

While traders may want a higher price on July 18th, many analysts are warning that it is just a bear market pump.

Related reading | Bitcoin Bearish Signal: Exchange Flows Rising Higher

Bitcoin prepares for a bounce

According to TradingView data, Bitcoin has made significant gains over the past week. At the time of writing, BTC is up 16 percent from its recent low of $18907.

The most valuable cryptocurrency is currently hitting resistance at the 200-week moving average, which also happens to be the top of the trading range that BTC has been stuck in since mid-June.

Over the past five weeks, attempts to break above this level have been repeatedly rejected, which is proving difficult to break. It is not yet clear whether Bitcoin will be able to overcome this barrier and move higher or if it will continue to fluctuate between $19,000 and $22,000.

The main difference between the current bear market and previous cycles, according to the latest Glassnode newsletter, is the “duration” and many on-chain metrics can now be compared to these historical pullbacks.

The achieved price, which is calculated as the value of all Bitcoin divided by the amount of BTC in circulation, has shown a good indication of bear market bottoms.

Number of days Bitcoin price traded below the realized price. Source: Glassnode

With the exception of the rapid crash in March 2020, which is depicted on the chart above, Bitcoin has consistently traded below its actual price for an extended period of time in all bear markets.

Glassnode explained:

“The average time spent below the realized price is 197 days, compared to the current market with only 35 days on the clock.”

Related reading | Bitcoin breaks the achieved price again, finally the bottom?

Featured image from Getty Images, charts from TradingView.com





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