Prominent Analyst: Crypto Market is Undergoing a Clear Breakout
After months in a seemingly endless downtrend, which saw the aggregate value of all crypto assets see a 75% haircut, analysis done by one of this industry’s best illustrates the fact that this market could finally be undergoing a breakout.
“Output: Bullish”
Contrary to popular belief, the crypto market’s relative non-action, which saw the volatility levels of the stocks of Amazon (AMAZ), Netflix (NFLX), Nvidia (NVDA), surpass that of Bitcoin (BTC), may be aiding the long-term prospects of this decade-old asset class.
Seemingly touching on this point, Crypto Rand, a prominent cryptocurrency analyst, trader, and advisor, recently took to Twitter convey two charts pertaining to the market capitalization of all crypto assets in circulation. The charts, which highlighted the 18-month logarithmic and linear performance of this market, indicated that crypto is finally breaking out of a colossal falling wedge. The wedge under Rand’s analysis, which formed in mid-January 2018, was just six weeks away from its inflection point, making this breakout one of great importance.
But, unlike normal breakouts, the one that Rand highlighted wasn’t catalyzed by a strong move to the upside, but rather, the stagnation of prices.
Overview of #CryptoCurrencies market cap in both Log & Linear scale.
Showing a clear breakout in both perspectives.
Output: Bullish.#Bitcoin #Blockchain #Trading pic.twitter.com/F7nmETGcwn
— Crypto Rand (@crypto_rand) November 5, 2018
Regardless, the crux of the prominent analyst’s point is that the bears seem to be preparing for hibernation, so to speak, while the bulls come round the corner. As Rand put it, “Output: Bullish.”
Vildana Hajric, an analyst at Bloomberg, echoed Rand’s breakout call, bringing attention to an indicator — Directional Movement Index (DMI) — that is reportedly signalling for BTC to head higher. More specifically, DMI, a popular indicator of the trend strength of an asset has “entered a new bullish phase.” Moreover, BTC recently broke out of its upper VERA band, which is apparently “widely considered an encouraging sign.”
In short, after months of declining volatility and an absence of bearish candles, indicators are pointing to the growing sentiment that Bitcoin, along with its altcoin brethren, is ready to establish a bottom and subsequently move off its near-year-to-date lows.
Crypto News Cycle Remains Bullish
Not only are the crypto market’s charts starting to look promising, but so are fundamental factors, such as the establishment of a number of crypto-centric startups aimed at marshaling mass adoption.
Blockchain Capital’s Spencer Bogart, known for his undying bullish sentiment, recently claimed that while patience is key, due to the positive developments that crypto market has seen, a bottom is within this industry’s grasp.
Bakkt, a cryptocurrency platform aimed at revolutionizing how institutions, retail investors, and merchants interact with this industry, is slated to launch its first product on December 12th. If the launch of its physically-backed futures products goes according to plan, Bakkt, which has been endorsed by the Intercontinental Exchange (ICE), Microsoft, and Starbucks, will only increase real-world use of crypto assets and blockchain technologies.
Boston-based Fidelity Investments, meeting ICE and its partners head-on, recently announced Fidelity Digital Asset Services, its own crypto-centric subsidiary, that will be solely focused on offering products pertaining to digital assets, like Bitcoin and Ethereum. FDAS, headed by Tom Jessop, has intentions to satisfy crypto custody and trade execution needs for Fidelity’s 13,000 institutional clients, which hold trillions of dollars worth of assets.
The two aforementioned developments are just the tip of the iceberg when it comes to constructive crypto-related news. So make no mistake, in spite of the dismal performance of the market, this industry is far from dead in the water.
Featured Image from Shutterstock
The post Prominent Analyst: Crypto Market is Undergoing a Clear Breakout appeared first on NewsBTC.
by Nick Chong on November 06, 2018 at 04:30PM