The total crypto market capitalization rose by over $17 billion within a crazy 48 hours over the past weekend resulting in suggestions that the market was headed for a bull run. The rapid growth was driven by an upward price action across most top cryptocurrencies with the market moving from a low of $227 billion to over $243 billion between Jan 24 and 26.
EOS led the rally with an impressive 25% price increase while Ethereum grew by 10% over the same duration. At the same time, Bitcoin was closing in on the $9,000 price for the first time in over 2 months.
Following this market action, analysts suggested that the crypto market was headed for a bull run provided certain conditions were met.
According to the analysts, Bitcoin is a major precursor with its price action greatly influencing the total crypto market cap thanks to its over 60% market dominance. A $9,000 bitcoin price was considered by many analysts an important barrier, which if broken could result in a reversal of the bear market.
The analysts also suggested that a sustained price rally in the next few days would be an indicator for a bull run. Particularly, they perceived that if the total market capitalization crossed the critical $250 billion mark then a reversal was on the cards. Accordingly, the crypto market has endured a 7 month bearish market since it last hit the $250 billion mark in November 2019.
At the time of writing, both of these conditions have been met and surpassed with Bitcoin trading at $9,350 and total market capitalization standing at $256 billion.
Therefore, this signals the end of the bearish sentiment, at least according to crypto analysts. It would also effectively blow a breath of fresh air into the crypto market which has been dominated by bears since July 2019 when Bitcoin price peaked at around $14,000.
The recent price rally has caused great excitement within the crypto space as it comes in the midst of various positive developments. There is much anticipation about the upcoming Bitcoin halving scheduled for May with the event viewed as a potential price catalyst. The crypto space is also enjoying some positive news with governments and institutional investors warming up to digital currencies. This coupled with the explosion of the Bitcoin futures and options market are opening up crypto to mainstream use further sustaining the bullish momentum.
Image courtesy of Marco Verch on Flickr
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