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Crypto is Breaking Out, But Bitcoin (BTC) Still Needs To Surmount $4,400

Crypto Breaks 1Yr+ Downtrend

Over recent weeks, the crypto market has embarked on a stellar rally. While some have described the price action as a “bull trap” or something of a similar nature, some evidence is pointing towards the fact that this market may be on the verge of a long-term rally, or at least a long bout of sideways movement underscored by a bullish trendline. The fact that Bitcoin (BTC) recently surpassed $4,000 has only somewhat cemented this theory.

Nik Patel, a popular content creator in this space, recently took to Twitter to lay out his thoughts on the market. Citing the recent movement seen in the value of all digital assets, he noted that this sum has finally broken out of a 15-month downtrend resistance line, and is holding well above a short-term uptrend.

Patel, much like many other crypto traders, then touched on the volume profile, explaining that the steadily rising increase has him slightly enthused. And with that, he concluded that more likely than not, bears are currently in a stage of disbelief, potentially setting a precedent for a further move to the upside. He adds that this ticker’s daily chart “does look bullish for the market.”

But, it isn’t exactly that cut and dried. Firstly, the cryptocurrency market capitalization (CMC) still remains under its 200-day moving average, which has acted as a pseudo-resistance in this bear market and a pseudo-support in 2017’s rally. To surmount this level, CMC would need to surpass ~$145 billion or so, currently 10% above current levels.

In a separate tweet, Patel touches on this, explaining that yes, we won’t be seeing all-time highs soon and that this budding market remains rangebound despite the casual trendline break.

Bitcoin Needs $4,400

In his most recent blog post, he touched on Bitcoin specifically, explaining what levels traders of the flagship cryptocurrency should watch in the near future. He notes that while there was a “bullish continuation” of last week’s positive-leaning momentum, and that BTC is holding above some key short-term supports, traders would be remiss to call for the moon.

Patel explains that Bitcoin needs to close above $4,400 on solid volume to confirm that it is not rangebound, setting the stage for a further move to the upside. But, considering that BTC topped out its last rally at around $4,200 or $4,300, there may be some key resistance levels in the region to move past.

Filb Filb, a preeminent trader, made a comment of a similar nature just recently. He explained that above $4,400 has a huge void in volume, and Bitcoin could thus move drastically higher from there if that auspicious level is reached.

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Bitcoin Won’t Be $3,000 Cheap Again, Crypto To Trend Higher In April

Analyst Awaits Bitcoin Breakout

Each and every day, the cryptocurrency market trades. More often than not, it seems to move in a random manner, with Bitcoin (BTC), Ethereum, or whatever other flavors of the week posting gains or losses without as much of an indication. But in the eyes of a prominent analyst, BTC moves more like clockwork than anything else.

Galaxy, a trader who sports tens of thousands of followers on Twitter, recently laid out why he believes that Bitcoin could begin a jaw-dropping rally in the coming months, citing historical trends to back his point.

The optimistic remarked that in 2013-2015’s market cycle, BTC tried to break out of a downtrending resistance three times, but was rejected each and every time. Following the second rejection saw a multi-month period of accumulation and consolidation, where the crypto asset found a relatively sturdy base and traded within it. Once the long-term resistance was about to depress BTC to new lows, the asset broke out, pushing new highs just a year or two later.

Interestingly, the same exact pattern seems to be playing out in the ongoing market cycle, as BTC has already failed to breakout three times, and could thus be in a zone of accumulation as it stands.

And with that, Galaxy remarked that if this pattern is observed, April 2019 will be the last month of $3,000 BTC… ever, as the cryptocurrency could begin its next cycle to head into 2020’s halving in that month.

Doused In Hopium?

While some claimed that Galaxy’s noticings were just filled to the brim with so-called “hopium,” with one noting that following this trend would be “too easy,” other prominent commentators agreed with the analysis.

Rhythm Trader, also known as Alec Ziupsnys on Crypto Twitter, drew attention to a chart he laid out that compared Bitcoin’s previous cycle to the one seen today. Like Galaxy, Ziupsnys made it clear that if trends are followed, BTC could very well be nearing a bottom as it readies for an eventual move past its $20,000 all-time high.

One commentator going by KALEO touched on trends too, explaining that as BTC has bottomed on parabolic support, which dates back to 2011 and has been cited by individuals like Cane Island Crypto (NVT creator). KALEO adds that considering the block reward reduction, which has historically propelled Bitcoin into monumental rallies, a new all-time high could come as soon as early-2021, meaning that now is the time to accumulate.

Then again, some were quite wary of Galaxy’s bit. What most cynics of this theory took issue with was the timeframe, as some explained that just by virtue of there being more money in these markets, cycles should be longer in theory.

Others touched on the Hyperwave theory, which states that BTC could revisit its previous all-time high at $1,200 before moving higher eventually.

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Could Bitcoin (BTC) Follow Gold’s Long-Term Chart?

Bitcoin Could Very Well Have Bottomed

A Twitter user going by “CabSav” recently drew attention to something he noticed in regards to gold’s long-term chart and Bitcoin (BTC)’s ongoing market cycle. In the chart seen below, which compares the two commodities over the aforementioned time frames, it becomes immediately apparent that they look somewhat similar.

In gold’s case, it spiked in the late 1970s, amid global turmoil and President Nixon’s decision to pull the U.S. dollar from the Gold Standard, reaching a peak during that time, before falling for years until the 1990s. In the case of Bitcoin, BTC peaked (as you know) at $20,000 in late-2017, falling to $4,000 where it sits just fifteen months later.

While these two cycles may seem nothing alike, both of them contained a similar lull, where the assets’ prices stabilized prior to one final drawdown. Following the last bout of capitulation, gold began to rally, reaching new all-time highs heading into 2008’s Great Recession.

So, if Bitcoin, known to many as digital gold, follows the historical trend established by its tangible counterpart, BTC could begin to rally, well, just about now.

There are some caveats to this analysis though. First off, the scaling of this is different from chart-to-chart. Gold fell from a ~$800 peak to $250, while BTC fell from $20,000 to $3,150. More importantly, is the multiple time frames that the chartist harnessed. Gold’s cycle was over multiple decades, while Bitcoin’s was not much more than a year.

As some have deemed this analysis moot due to the nuances aforementioned, here’s a similar bit done in the same vein.

Will History Rhyme? BTC Could Hit $20,000 By Early-2021

Under the Rhythm Trader handle, prominent trader Alec Ziupsnys and his team recently drew attention to the eerie lines that can be drawn between 2014 to 2016’s market cycle and the one seen today.

Ziupsnys, who has risen to prominence for incessantly touting the merits of Bitcoin over centralized financial institutions, noted that if BTC truly follows a multi-year cycle of boom and busts, there’s a likelihood that the cryptocurrency has already bottomed.

By the same token, Rhythm Trader explains that if a long-term floor has been established and market cycles are followed to a tee, BTC could begin to slowly but consistently move higher, eventually establishing in a new all-time high in early-2021. This would line up with analysis from Cane Island Crypto, per previous reports from Ethereum World News.

Cane Island Crypto, the creator of Network Value to Transactions (NVT), a popular fundamental measure used for cryptocurrency valuation models, recently took to Twitter to explain that when BTC isn’t “manipulated by jack leg exchanges,” it remains in a perfect parabolic trend. Giving his point further credence, he posted a chart, which showed that since BTC started trading at sub-$1, it has held a consistent uptrend, save for a few nuances here and there that came after a significant drawdown.

Extending the trend, the Texas-based analyst determined that if Bitcoin’s implied price for 2019’s end will be $7,800, 2020’s end will be $15,426, and so on and so forth. The Cane Island investment manager noted that if Bitcoin continues to hold this line, by the end of 2022, BTC will be valued at $52,321 and just under double that just 12 months later.


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Bitcoin Cynic, Who Shorted The $20,000 BTC Top, Questions Wall Street Narative

Bitcoin Skeptic Doubles Down

Per previous reports from Ethereum World News, Mark Dow, a skilled chartist who heads mainstream finance hedge funds, has long been a skeptic of Bitcoin. In late-2017, he opened a BTC short, closing the profitable position just recently.

Days after he closed his short, he went on to draw a harrowing picture for the cryptocurrency’s chart, noting that if BTC fails to surmount $5,000 or $6,000 in the near future, “even the HODLers need to GTFO.” Dow, who currently manages a family office in Southern California, doubled-down on this cynicism towards Bitcoin in a recent tweet.

Dow remarked that as he held his position open, he saw “the liquidity get worse every time.” He goes on to draw attention to the fact that the CBOE, one of the world’s largest derivatives exchanges, has plans to put its BTC futures contract on the backburner for an undisclosed reason.

Many believe that the American exchange is doing this as a result of waning volume figures, which is likely what he was referring to. And with that, Dow added that it’s hard for him to buy “the story about broadening institutional adoption.”

Interestingly, Dow wasn’t the only one questioning the institutional narrative that optimists claim would wrest Bitcoin from its deep slumber. Joe Weisenthal, a crypto-friendly Bloomberg TV anchor and reporter, took to Twitter just recently, issuing the statement seen below.

Like the aforementioned short-seller, Weisenthal also draws attention to the recent CBOE news, citing the development to accentuate that “‘institutional money’” isn’t coming in.

But Aren’t They Coming For Our Crypto?

Although the aforementioned two seem to be making an argument that cryptocurrencies are current beneficiaries of Wall Street’s cash, the news cycle may indicate otherwise.

The University of Michigan’s endowment, which has $12 billion in assets, recently announced its intentions to siphon more of its funds into crypto-centric funds in the near future. Per a Board of Regents agenda, the institution has its eyes on a “cryptonetwork technology” (they likely mean blockchain technology) fund managed by the world-renowned Andreessen Horowitz. More specifically “CNK Fund I,” as the vehicle in question has been dubbed by the Menlo Park, California-based venture group that backs it, is currently in the University of Michigan’s scopes. According to Kevin Hegarty, the chief financial officer at the state-run educational institution, CNK invests in “cryptonetwork technology companies across the spectrum of seed, venture and growth stage opportunities.”

American pension funds, two from Fairfax County, Virginia to be specific, have also started to “get off zero,” as Anthony Pompliano of Morgan Creek Digital would say. The state’s police force and government employee pension plans recently led a fundraising round for Morgan Creek’s latest venture, a $40 million fund centered around garnering equity in leading upstarts, like Bakkt, Coinbase, and Harbor, and allocations in physical cryptocurrencies.

And Fidelity Investments recently unveiled that it has soft-launched its Bitcoin custody product, and potentially its trade execution service too.

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Could Booming Bitcoin Volume Set A Precedent For A Crypto Rally?

Bitcoin Trading Volumes Boom

Over recent weeks, it has become more and more apparent that life has returned to Bitcoin (BTC), and the broader digital asset ecosystem by extension. Independent cryptocurrency researcher Kevin Rooke recently drew attention to data that would corroborate this sentiment on Twitter.

Rooke notes that per statistics from Nic Carter’s CoinMetrics, Bitcoin trading volume on all exchanges combined is up by 150% or so over the last five months, all while BTC fell from $6,000 to $4,000. He adds that the average daily volume sum for the cryptocurrency hasn’t been this high since January 2018, when BTC was falling off its $20,000 peak in a surprising, rapid turn of events.

And to put the cherry on top of the proverbial cryptocurrency cake, Rooke adds that while a mere nine days in the last 12 months have posted $10 billion in Bitcoin volume, five of those days have been in the past two weeks.

Could This Set A Positive Precedent For Crypto?

While there are other catalysts that could drive this market, volume readings are seen as a key way to interpret market interest in an asset, meaning that the recent influx of both buying and selling pressure could mean that investors (or traders at the minimum) are starting to see some money-making potential. Many believe that this newfound speculation could fuel a bounce.

Financial Survivalism, for instance, noted that from a top-down perspective, trading volumes are the highest this industry has seen since the last week of 2017, a time when everyone and their dog were investing their savings into altcoins in dreams of striking it rich. The insurance agent turned Bitcoin traders adds that this nascent space hasn’t ever seen “four straight weekly bars with [this] much buying volume,” leading him to the conclusion that a short-term bounce to precede a move to under $2,000 is in Bitcoin’s cards.

But, there’s a nuance or two. Crypto Integrity, a blockchain-centric research division that specializes in market manipulation and fraud, claims that up to 88% of all volume figures could be entirely fraudulent. Integrity’s data science team specifically draws attention to OkEX, Bit-Z, Huobi, HitBTC, among a handful of other mostly unregulated exchanges as perpetrators or accessories in potential wash trading schemes.

Speaking to Decrypt, a team member from the research group explained how it gathered this information:

“[We built] a system that collects low-level market data from exchanges (order books as well as trades). It allows us identify what no one is able to find on charts or by the analysis of trades & volumes.”

If this is accurate, this revelation would be a drastic blow to analysts who believe that cryptocurrencies are slated to move higher on the back of volumes.

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Analysts Wary That Bitcoin (BTC)’s Lull Could Set Precedent For A(nother) Crypto Plunge

Bitcoin Price Action Looks Eerily Similar To Late-2018

Markets have patterns. There’s no hiding that non-secret. While these market trends may sometimes be hard to spot, sometimes, they’re more apparent than ever. This too is the case with Bitcoin (BTC) and cryptocurrencies, despite their nascency.

Moon Overlord, a popular chartist with a mass of Twitter followers, recently drew attention to an interesting trend in BTC. The trader, who commands the eyes and ears of tens of thousands, notes that the price action seen since late-November is eerily similar to than seen from July to early-November.

More specifically, during these two timeframes, which are now exactly the same length time-wise, BTC has held relatively flat. However, what Overlord seems to be drawing attention to is the gap between the two periods, which saw Bitcoin fall through $6,000 all the way to a yearly low of $3,150.

While he didn’t give an explicit comment, it is heavily implied that if Bitcoin follows history, the cryptocurrency market is in for yet another drastic drop. If mid-November’s plunge is mirrored to a tee, which some fear is all too likely, BTC could find itself under $1,500, as altcoins suffer with even deeper lacerations.

$800 Bitcoin Inbound?

Funnily enough, this isn’t the first time that a call like this has been made in 2018/2019’s so-called “Crypto Winter.” Financial Survivalism notes that the longer BTC fails to surmount a long-term declining trendline at ~$4,600, the higher likelihood that the cryptocurrency’s price could “mirror the price action from September 20th to November 25th of last year.”

Per the analyst, this would mean that BTC could trade flat for another two to three months, before falling dramatically to the $800 price point. This, of course, is a worst-case scenario, but Survivalism does allude to a good point about market cycles and behavioral economics.

Even if a capitulation-induced collapse to $800 is improbable, sub-$2,000 predictions have been floated by many an analyst.

Leah Wald, who subscribes to the Hyperwave, is sure that BTC will fall under $2,000, for instance. The popular trader recently took up a one BTC bet with Filb Filb, as she believes the Bitcoin price will hit $1,500 before it trades above $6,500 on Bitstamp.

Murad Mahmudov is also under the impression that sub-$2,000 for the lead cryptocurrency isn’t out of the question. Mere weeks ago, he expressed how logical it would be to see BTC fall to $1,700 by June, using long-term trends and long-standing moving averages to convey his point.

Then again, some have kept their heads up high. Just as there are bearish analysts, there are bullish analysts too. Filb, for example, claims that if BTC can hold $3,400, $5,000 by May is entirely possible. He notes that a number of technical measures have started to turn in Bitcoin’s favor. Filb specifically drew attention to the 12-hour Moving Average Convergence Divergence, which has begun to trend positive above zero. The analyst also touched on Chaikin Money Flow (CMF), which measures buying and selling pressure, which has begun to signal that there is underlying buying pressure in BTC markets.

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Fundstrat’s Tom Lee Still A Raging Bitcoin (BTC) Bull, Here’s Why

Tom Lee has shown his face on mainstream media once again to tout the merits of Bitcoin (BTC). On a recent segment of CNBC’s “Futures Now”, the Fundstrat Global Advisors head of research lays out what he sees is going for the cryptocurrency. Like many of his other appearances, his comments had bullish undertones. But why is Lee bullish on BTC?

Macroeconomy Trends to be Bitcoin Tailwind

He tells CNBC that more likely than not, 2019 will be the year of repair for this market, adding that the macro picture could provide Bitcoin with a bit of a boost of nitrous oxide. Lee explains that there has been a risk-on rally in global markets, potentially giving BTC and other digital assets, deemed risk-on by many traders, the ability to see some incoming cash flow.

Funnily enough, some would deem this noticing on macro markets as moot, as many economists are expecting a slow in the growth of the global economy over 2019 and 2020, potentially curbing the risk-on rally that Lee sees.

Drawing attention to the U.S. dollar, Lee explains that the fact that the currency isn’t surging should be a tailwind for the flagship cryptocurrency over the coming year.

200-Week MA, JPM Coin, Etc. To Provide BTC With Positive Price Action

He goes on to draw attention to technicals, touching on the ever-important 200-Week moving average. The New York-based investor, known for his incessant optimism in a variety of markets, notes that BTC has been bouncing around the aforementioned technical support, potentially indicating that it has found a semblance of a bottom.

But this factor pales in comparison to developments (fundamentals) that the cryptocurrency space has seen in the past weeks alone. Lee specifically touches on the launch of JP Morgan’s own digital asset, and similar ventures from both Facebook and Telegram.

He explains that in a world where there are less than 50 million active digital asset wallets, but billions of Visa or Mastercard holders, these corporate cryptocurrencies will be integral in driving adoption. This adoption, of course, boost Bitcoin’s network effects, making JPM Coin and projects of a similar nature bullish catalysts.

Fundstrat’s co-founder and de-facto figurehead even touchea bit on the adoption that cryptocurrency has seen in the hyperinflation-hit Venezuela, where locals are finding a true use case for a deflationary, decentralized, and uncensorable asset in Bitcoin and altcoins.

Closing off his guest segment, the Bitcoin bull, who still believes that $25,000 for each BTC is viable, notes that if the cryptocurrency continues to hold around $4,000 in the months to come, he would be convinced that it would be geared up for a full-on rally.

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Crypto Cynic Marc Faber Buys Bitcoin, But Why?

“Gloom, Boom, Doom” Author Downs The Bitcoin Red Pill

While the downturn in the cryptocurrency market has deterred retail investors across the board, it may have set the stage for institutional players, high net-worth individuals, and influential players in the world of finance to make an entree. In a recent interview with Cash, Marc Faber, who much like Nouriel Roubini is also known as Dr. Doom, revealed that he bought his first Bitcoin (BTC).

For those who missed the memo, Faber, best known for his “Gloom, Boom, Doom” finance newsletter and his standing as an investor, has long bashed digital assets. Like many others embroiled in the traditional world of finance, the Swiss investor likely isn’t all too convinced with digital money that isn’t within the bounds of a traditional asset.

But, he bought some (he didn’t reveal how many he bought) BTC regardless, just ten days ago as of the time of the interview.

He chalked up to his rationale to the fact that Bitcoin looks “technically better,” likely touching on the fact that the collapse from $20,000 to $3,150 likely wiped out most of the market froth that deterred technical analysts en-masse. This wasn’t the only reason though. Faber, now based in Thailand, adds that readers of his newsletter asking him about his involvement in cryptocurrency has also enticed him to look into BTC further. He’s FOMOing if you will.

Funnily enough, the two aforementioned factors were only underscored by a discussion Faber had with Wence Casares, the chief executive of cryptocurrency giant Xapo. Per the market cynic, Casares told him that BTC could very well go to either $0 or $1,000,000, accentuating the asset’s asymmetric value proposition. The fact that an industry insider openly admitted that the flagship cryptocurrency could crumble to dust may have enticed Faber in some way, shape, or form. Who knows?

Now that he owns his BTC now, the “Gloom, Boom, Doom” author seems to be a tad more optimistic. He tells Cash that there’s a fleeting possibility that Bitcoin or systems of a similar caliber could become the “standard for money transfers.” Yet he made it clear that prospective investors in BTC and other digital assets should only buy as much as they’re willing to lose, likely referring to his thoughts on the nascency of this newfangled asset class.

Regardless, the bottom line is that he scooped up some BTC.

Not The Only Crypto About-Face

Interestingly, Faber isn’t the only former cynic to have taken a 180, so to speak, as the crypto crash has continued to slam this market.

Niall Ferguson, a prominent economic historian, recently claimed that he was “very wrong” when he issued his comments that Bitcoin is a “complete delusion.” He added that there are a need and demand for digital currencies backed by blockchain technologies.

Funnily enough, there have still been some that have stuck with their anti-Bitcoin scripts though. Nouriel Roubini, for instance, told the CFA Institute that the fact that many asking for his advice on Bitcoin “did not even appreciate the difference between stocks and bonds or types of markets, or the basics of credit and interest rates” was an evident red flag that something was amok.

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Following Fidelity’s Bitcoin Soft Launch, IBM Delves Into Crypto Custody

New York Firm Launches Crypto Offering

2018 may have seen Bitcoin (BTC) fall by over 70%, but institutions and powerhouses in traditional industries are still actively seeking to get their foot into the crypto door. CoinDesk reports that blockchain-friendly IBM, one of the largest forward-thinking technology companies across the globe, has quietly entered into the cryptocurrency custody space with a little-known partner.

The outlet’s Ian Allison writes that Shuttle Holdings, a New York-headquartered investment group, will be launching custodial services for this newfangled asset class sometime in late-March. Shuttle has purportedly built the offering on IBM’s private cloud service, backed by the Corporate America darling’s encryption technology. It is important to note that Shuttle is offering the tools for cryptocurrency custody, rather than handling the nitty-gritty itself.

Much like other institutional plays in this budding space, Shuttle has started small, offering its solution to a hand-picked list of clients that it believes can handle the cryptocurrency stress. Eventually, however, the company intends to see banks, brokers, custodians, family offices, along with other institutional subsets dabble in the storage of cryptocurrency.

Shuttle and IBM’s venture is not exactly what Bitcoin traditionalists would call cold storage. As hinted at earlier, private keys will be stored not on a device in a vault, but in the cloud (private that is) and secured by a number of layers of industrial-grade encryption. In a presentation at an IBM event, Shuttle’s Brad Chun explained that it sought to harness this method of custody as firms need their cryptocurrency often at a moment’s notice, with a digital system being much more efficient in that regard. He even states that by some measures, Shuttle’s tools will be “just as secure, if not more secure” than regular cold wallets, some of which were proven to have massive security vulnerabilities over recent months. Explaining more about the project, Chun told CoinDesk:

“There are always trade-offs between security and efficiency, but we do not utilize a traditional cold storage system. Instead, we keep keys at rest encrypted in multiple layers as data blobs so that an organization can store these backups using their pre-existing disaster recovery and backup processes and media.”

Interestingly, Chun mentioned that he attempts to push Shuttle’s custody service to eventually service real world asset-backed tokens, like those for real estate (land titles), shares of both private and public standing, among others. As Anthony Pompliano, Jeremy Allaire, among others are pushing for a tokenized world, this may only make sense.

This offering comes after IBM’s blockchain head, Jesse Lund, told reporters that he expects Bitcoin to end the year at $5,000 before skyrocketing to $1 million as time elapses.

Custody: A Growing Trend

This, of course, only underscores the industry trend of custody of digital assets. Per previous reports,  it has been officially confirmed that Fidelity Digital Asset Services (FDAS), the first fully-fledged crypto platform backed by Wall Street, has gone live. In a number of interviews with cryptocurrency outlets this week, Tom Jessop, a former Goldman Sachs executive turned head of FDAS, explained that his brainchild’s offerings are live for a select list of “eligible clients.” Jessop adds that at the moment, the platform only supports Bitcoin, and will be staving off its verdict on Ethereum due to impending blockchain upgrades.

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Bitcoin Fundamentals Boom Amid Crypto Winter: Why Hasn’t BTC Caught Up?

Bitcoin Fundamentals Still Better Than Ever

It isn’t a secret that the fundamentals of the cryptocurrency space are looking rather hot. Spencer Bogart of Blockchain Capital told Bloomberg TV that this nascent space is still rife with innovation, talent, and capital. The prominent crypto investor explained that the levels of entrepreneurial talent and institutional interest hasn’t ceded with the Bitcoin price, leading him to determine that this ecosystem is far from dead in the water.

He even remarked that from a macro point of view, with rising debt levels, copious quantitative easing, globalism concerns, among other issues, BTC could be the “most compelling asset in the world right now.”

Dan Held, the co-founder of Interchange and a former product manager at Blockchain.com, has also expressed optimism, noting that he’s more bullish on Bitcoin than ever before.

He laid out six points to back his comment on Twitter: Starbucks’ public valuation is higher than BTC, less than 0.1% of the world’s population is involved in Bitcoin, the halvening is under 450 days away, a crypto-backed exchange-traded fund (ETF) could arrive by late-2020, government debt swells, and the “institutional plumbing is being built.” Held’s remarks come after prominent trader The Crypto Dog released a similar list of things to be bullish about just days ago.

While all these developments have continued to bless the industry, prices have seemingly failed to react. In fact, since the lows established in mid-December, the aggregate value of all cryptocurrencies has only moved from $102 billion to $135 billion. Although a 30% gain within three months is impressive in any other market, investors have deemed this performance lackluster at best.

Market Continues To Trade Flat

The team at Pantera Capital put this underlying market theme best in a recent letter. Per previous reports from Ethereum World News, the blockchain-centric venture group stated:

We have been surprised to see how far prices have deviated from the underlying fundamentals — which are stronger now than ever.

But why are prices barely moving, in spite of the news?

Well, the answer may be quite simple. Many have looked to the “Wall Street Cheat Sheet — Psychology of a Market Cycle” for an answer. The chart dictates that following capitulation, recently exemplified when Crypto Yoda left the space, markets enter a stage of anger, desperation/depression, and then disbelief.

Pundits claim that we are in the later phase, as many are sure that lower lows are inbound, and that the development of the crypto industry in recent weeks is just white noise, so to speak. The Crypto Dog, a prominent Bitcoin trader, touched on this himself recently, noting that while sentiment is more bullish than bearish, a fleeting feeling of an impending collapse still sits at the back of his mind  — a likely sign of a market phase of “disbelief.”

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