Bitcoin Finds Momentum at $7,400, Traders Show Big Optimism Toward Tokens
The crypto market is beginning to show some signs of recovery following the massive sell-off that pushed the overall cryptocurrency market cap to below $200 million.
The signs of recovery come as Bitcoin has found some relative stability above the $7,000 threshold, which is allowing some alt-coins to post slight gains.
Bitcoin Stable, Alt-Coins Higher Than Year-to-Date Lows
Bitcoin is currently sitting at just under $7,400 according to CoinMarketCap, which is nearly $2,000 higher than its three-month lows of $5,800.
In the weeks following Bitcoin hitting its year-to-date low of under $6,000, the price steadily rose to well over $8,500 before crashing back to approximately $6,000.
During this time, alt-coins saw meteoric rises, but were quickly driven to new year-to-date lows as market sentiment became overwhelmingly bearish and volume subsided.
XRP, for instance, fell from its three-month high of $0.68 to its year-to-date low of just over $0.26. ETH has also seen immense volatility, falling from its three-month high of over $600 to its year-to-date low of approximately $260.
The markets have yet to see a meteoric rise following the last crash, but they have found some relative stability and are beginning to recover. Bitcoin has risen almost $1,500 from its one-month low of $6,000 on August 13th. In the time since alt-coins have also seen some small price rallies, with XRP rising $0.08 to $0.34, and Litecoin (LTC) rising nearly $20 from its low of $50.
On Twitter, many popular technical analysts have shared their thoughts on the current state of the cryptocurrency markets. The Crypto Dog (@TheCryptoDog) mentioned to his 90 thousand followers that “if you’re bearish on $ALTS right now you are probably not very experienced at trading $crypto.”
Another popular trader on Twitter, Cheds Trading (@BigCheds), expressed his hesitation to be bullish due to the overwhelming amount of bulls on Twitter. He said that “crypto Twitter is hella bullish on $BTC #Bitcoin right now and that concerns me as a contrarian.”
Upcoming Events That Could Affect the Crypto Markets
While the Bitcoin markets are relatively stable right now, there could be some major volatility in the upcoming month.
On September 30th, the U.S. Securities and Exchange Commission (SEC) is scheduled to give their decision on the CBOE VanEck/SolidX Bitcoin ETF, which was postponed last month.
If the SEC approves the application, there will likely be a major rally for Bitcoin, which could lead the entire cryptocurrency markets upward. If the SEC declines the application, or postpones their decision on the application, the markets will likely fall due to the high anticipation for a positive decision.
Many people feel that investors should focus less on the Bitcoin ETF and more on other institutional venues that are beginning to take shape.
One such example would be NYSE parent company’s Bakkt crypto exchange, which has big name partnerships including ones with Microsoft and Starbucks. If the CFTC approves Bakkt’s application to be an exchange, the exchange could draw a significant amount of institutional money into the crypto markets.
Regardless of the SEC and CFTC’s decisions on the Bitcoin ETF and the Bakkt exchange, it is likely that the current stability in the crypto market is the calm before the storm.
Featured image from Shutterstock.
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