Will the cryptocurrency market rally again?

The cryptocurrency market has been on the way to recovery this year. Will the small gains lead to a total market recovery?

March 27, 2019. | AtoZ Markets – Since crypto prices had their 2018 bottoms in December, the entire market has been on a good run. First, market capitalization has surged from $131 billion at the beginning of 2019 to the current $142 billion. Trade volumes have also surged across the board due to higher trading activities. Most of the exchanges are now having more trading volume that in the second half of 2018 when the bearish run worsened. It can easily be argued that the bullish run since December 2018 has been primarily driven my market speculative sentiments. The huge volatile spikes have been far rarer compared to the 2017 bullish moves. Therefore, it’s not very certain that the current recovery is the main market recovery expected. As prices are currently resisted from making higher highs since December-January highs, questions are being asked again as to how long the current recovery will last. 

Market buoyed by positive developments

Lately, there have been positive news around the market. The less dominant cryptos are also making even better runs that the big 3 (BTC, ETH and XRP). Litecoin trade volume hit 450%. Its market capitalization almost tripled and has also recorded over 100% price gain in 2019. EOS, Stellar, Cardano and other altcoins have had good moves. Litecoin and Bitcoin were recently adopted by the Venezuelan government to make remission payment, Ripple has been successfully integrated with WooCommerce with potential usage by over 3 million web owners on the platform. Etoro also plans to adopt Ripple payment platform, xRapid.

Twitter CEO, Jack Dorsey last week posted crypto engineer jobs for payment app Square. The industry is getting more adoption by the day and its expected to grow. This accumulation of adoptions will attract the big guns that will spike the market cap once again and drive huge volumes which will, therefore, lead to higher prices. Will prices return to late 2017 levels and beyond? Most definitely yes. However, it’s difficult to know the time this will happen.

How traders benefit from market volatility.

From a ‘Hodling’ perspective, the current run is still very small when compared to the big picture. Until prices return to the pre-November breakout zone, talk of recovery is premature. Aside ‘Hodling’, traders can also take advantage of speculating short-term market moves. CFD crypto trading is now available with some crypto exchanges and CFD brokers. Traders can take advantage of price movements in either direction with moderate leverage instead of waiting for the next bullish phase only. Most of the traders who engage in CFD crypto trading make use of technical analysis. Here is a Bitcoin technical analysis from Elliott wave perspective.

Bitcoin technical analysis and important price levels.

The chart above shows price progressing from 3121 low with a corrective zigzag pattern. The zigzag is most likely the 4th wave of the bearish run since November breakout. Currently, the price is advancing toward 4069 resistance. A break above should lead to further rallies to retest 4190 and 4239 resistance before making a new high (since the 3121 low) at 4500-4700. We shall see what will happen thereafter. 

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