The world of cryptocurrency has been going through a lot of changes recently. With Bitcoin hitting new all-time highs and many other coins experiencing impressive growth, it’s no wonder that so many investors are looking for a new bull phase in crypto. The question is, will we see one soon? Let’s take a closer look.
First, what is a bull phase? Essentially, it’s a period of time when market prices are rising and investor sentiment is generally positive. During a bull phase, investors tend to be more optimistic about the future and are more willing to take on risk.
So, what does it take to see a new bull phase in cryptocurrency? There are several factors to consider. First, we need to look at the overall market trends. Are cryptocurrencies gaining in popularity? Are more people investing in the market? If the answer is yes to both questions, then we may see a new bull phase on the horizon.
Another important factor to consider is the role of institutional investors. These are large financial institutions, such as banks and hedge funds, that have gotten involved in the cryptocurrency market. When institutional investors start to take an interest in crypto, it can signal a new bull phase. This is because these investors have a lot of money to invest and can significantly impact the market.
Recently, we’ve seen some positive signs when it comes to institutional investors. For example, PayPal announced that it would start allowing users to buy, hold and sell cryptocurrency on its platform. This is a significant development because PayPal has over 300 million users around the world. This means that a lot of people who may not have been interested in cryptocurrency before will now have access to it.
Another positive development is the increase in cryptocurrency-related ETFs (exchange-traded funds). These are investment products that allow investors to buy into a diversified portfolio of cryptocurrencies. The more ETFs that are available, the easier it becomes for investors to gain exposure to the market. This can also help to drive up demand for high-quality cryptocurrencies, which can result in a new bull phase.
Of course, there are also a few potential roadblocks to watch out for. First, there is the issue of regulation. Governments around the world are still grappling with how to regulate cryptocurrencies, and this uncertainty can make some investors nervous. Additionally, there is always the risk of the market becoming overvalued. This can lead to a cryptocurrency bubble, which can ultimately burst and lead to a market correction.
So, is a new bull phase in crypto on the horizon? It’s difficult to say for sure, but there are certainly some positive signs. As more people become interested in cryptocurrencies and institutional investors start to take a bigger role, we could see a surge in demand for high-quality coins. However, investors should always be cautious and do their own research before investing in any market.
In the end, the future of cryptocurrency is uncertain. However, for those who are willing to take the risk, there are certainly opportunities for growth and profit. Whether or not we see a new bull phase in the near future remains to be seen, but one thing is for sure – the cryptocurrency market is never boring.
The US debt ceiling debacle has complicated the macro backdrop, but recent data suggests further tightening from the Fed and a mid-late cycle risk. While US equities have continued to perform well, led by the Nasdaq, cryptocurrency may be caught between the positive equity move and a strong recovery in the USD. Despite this, the technical outlook suggests that crypto will play catch-up in the coming weeks.
Ethereum has been tracking sideways to slightly higher, with no change to the bullish outlook after holding and reversing higher from Fibonacci support around 0.062. Targets are for an eventual move back towards the previous range highs, with trend line resistance at 0.06838 opening the next leg higher in the cross to 0.075-0.078. A break of 0.064 and 0.062 would signal a move towards 0.057.
Bitcoin, on the other hand, has experienced a correction phase from the 31,000 spike high, which has extended in wave C with the potential for a push towards the 25,500-25,000 weekly trend and pivot support region while under 27,700 resistance. Studies suggest looking for a higher low to develop around that area and a potential bounce before new highs or a move straight back to new highs targeting resistance in the 33,000 region. A collapse through support signals the risk for a move to 22,000-20,000.
Both Ethereum and Bitcoin demonstrate the potential for higher lows and rebuilding longs. Longer-term, Ethereum’s reversal from last year’s lows targets ~2400/2450 resistance, with a decline back through 1400 negating the bullish outlook.
Macro Hive’s Robin is a global market veteran, providing strategic trading and investing advice to hedge funds, family offices, and trading desks. Overall, the macro backdrop remains uncertain, but recent data suggests further tightening from the Fed, providing potential bullish outcomes for cryptocurrency.
