The Cryptocurrency market has been having consistent gains for the last two months. This is one of the longest streaks of a bull cycle and some experts believe that the market is out of the woods. According to Alec Ziupsnys, a Bitcoin enthusiast going by the name Rhythm Trader on Twitter, the last time that Bitcoin has had a similar prolonged surge was in 2017 when the price hit the monumental $20,000 before losing 70% of its value in the remaining part of 2018.
Analyzing The Numbers
The Bitcoin rally started in the middle of February when weekly gains recorded were such as 2.9%, 1.58%, 2.86%, 1.73%, and 0.11%. In the last week of last month, BTC surged by 3.18% that corrected the previous low gain.
At the close of the week, the BTC price had appreciated from a low $3, 600 to $4,300 representing a growth of 13% in the period between February 17th and the end of March.
It is important to note that the momentary uptick has been happening on the backdrop of high trading volumes as investors have been taking advantage of the relatively low prices to invest in BTC. Further, Bitcoin Communities and Crypto forums have been flooded with articles speculating that BTC has already hit the bottom and the next likely scenario is that of a bull cycle. This prompted more investors to buy BTC reducing the sell-off pressures that the market was experiencing.
BTC Has Been Less Volatile
Interestingly, there has been an “altseason” in which other cryptocurrencies such as BSV and Bitcoin Cash surged at a higher pace more than BTC. This means that Bitcoin was relatively stable/less volatile and very consistent.
This effect has a stabilizing effect on the whole market as BTC has been having a market dominance of over 52% which has since fallen marginally to 51% given the prolonged stability of BTC in relation to the rest of the Altcoins.
Further, according to Murad Mahmudov, the low BTC volatility is historically an indicator of a stable market. A Bloomberg report has also backed up this observation and is projecting a bull cycle in the long-run.
A BTC Rally Is Almost Probable
Todd White from Bloomberg has analyzed the GTI VERA Convergence Divergence Indicator to project that Bitcoin rally will be sustained in the long-run. The indicator enables investors in a market to determine the trend that assets prices are likely to take.
According to Todd, it is the first time that the indicator has been able to predict a BTC rally in recent months. There was a similar projection where the GTI Vera Convergence Divergence Indicator projected a 17% gain in BTC price within two months and history is repeating itself.
Another indicator known as the “Market God” from Crypto Thies has also issued a buy signal further showing that BTC will continue its rally.
April Fool’s Day Prank Led To Price Surge
On April 1st, a gag that the US SEC has approved two Bitcoin ETFs led to a sudden price surge of about 23% where BTC briefly broke the $5,000 level of resistance. This is because traders rushed to buy BTC ahead of the rally that could follow the approval. However, it has since been established that that was a hoax and the price has since retracted to $4,700.