The holiday season has finally made bulls to take charge over the bears and make Christmas a lot merrier for the crypto enthusiasts. Bitcoin(BTC) which was struggling to maintain the resistance above $3,000, has finally turned bullish, surging its price over $4,000. At the time of writing, BTC was trading at $4,061 with a rise of 7.3% in the last 24 hours.
Bitcoin has been on a recovery mode since late 18th December and so are most of the other altcoins. Bitcoin Cash (BCH) made the best of the bullish trends and surged over 50%. Mind you this is the same BCH which was struggling to break even above $100 after the lawsuit against Roger Ver side came to light. This has puzzled many analysts as in why BCH Prices are on the Rise after such a nasty fall just two weeks ago.
Analysts are Cautious Over The Price Rise
The bullish crypto market has helped several cryptocurrencies to recover their losses due to dry cold crypto winter. Bitcoin has made a 30% recovery from its 2018 lows, which saw the prices go down as low as $3,175. BCH had even a bigger fairy tale recovery with a surge of over 50%. However, analysts seem still bearish in their thought process and have warned investors to contain their excitement, as these bullish trends are not backed by any solid entity and still a few whales can manage to create chaos.
Alex Kruger a popular economist who has been a long-time crypto analyst as well believes that the current market rally of transactions might have pushed the prices in the green zone, but that does not indicate any rabid-bull run in near future. In his recent tweet to his 22,000 followers said,
“Crypto bullish talk is increasing. Some are deriding bears looking for lower prices. Most of these bulls lost a fortune, are deeply underwater, and are actually best ignored… Crypto simply stopped falling. Nothing else has changed. No reason to expect a rabid bull run yet. May easily print new lows in the following weeks. A wide range is IMO the most likely scenario to ensue. Nothing to FOMO into.”
Mati Greenspan, a senior market analyst at eToro, resonated with Alex views and says that the current trends are the result of sellers closing their position.
The current bullish trends for sure has come in like a surprise Santa gift for the crypto enthusiasts, but the rise should not be hyped. As analysts have rightly pointed out that the surge is not a guaranteed sign of any steady uprise. The issue with the media hypes is that it increases our expectations beyond the tangible calculation. A very good example is last year mammoth rise in Bitcoin prices, which made many investors make some bizarre claims such as BTC prices doubling its highest value of sub 20k in December 0f 2017.
The BTC price is still shaky and volatile, and in order to make it a happy new year for investors, it needs to break above the resistant mark of $4,200.