Bitcoin is trying to break above $9,000

The first rally in 2020 and a breath of fresh air not only for Bitcoin but for almost all altcoins continues to feed the market with hope. On Friday, Bitcoin is trying to break above $9,000. Altcoins have shown impressive spike and at the moment switched to more moderate growth. Over the last week, the total capitalization of the crypto market grew by 18% to $244bn.

What is happening now is indeed often reminiscent of 2017, but the current price levels of altcoins are still much lower. The first to declare the beginning of the "altcoin season" faced harsh criticism. However, now it is unlikely that the critics will be so fierce. The more consistent the growth of altcoins, the fewer pessimists will be left. And when there are very few pessimists, the market usually starts to drop.

We do not want to spoil the good mood of the altcoin holders, but the current growth is very likely to be speculative. Bitcoin can boast of infrastructure, institutional investors, recognizability. On the other side, recently, the market was ready to bury altcoins as a class. Speculators likely considered the moment is ideal to start buying. Another question is what levels they chose to leave the market. They are probably much lower than market participants can imagine.

Crypto-enthusiasts want to believe that Bitcoin and altcoins are still capable of showing new historical highs. We are still dealing with a series of declining highs: the market participants are starting to take profits at ever lower levels. So far, this trend still alive.

Another significant difference from the 2017 rally is that market participants now do not have that much time. Now bots are taking profits with clear instructions on the levels, so it is worth watching the technical indicators guided by institutional investors.

Share: Cryptos feed

FxPro UK Limited is authorised and regulated by the Financial Services Authority, registration number 509956. CFDs are leveraged products that incur a high level of risk and it is possible to lose all your capital invested. Please ensure that you understand the risks involved and seek independent advice if necessary.

Disclaimer: This material is considered a marketing communication and does not contain, and should not be construed as containing, investment advice or an investment recommendation or, an offer of or solicitation for any transactions in financial instruments. Past performance is not a guarantee of or prediction of future performance. FxPro does not take into account your personal investment objectives or financial situation. FxPro makes no representation and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or other information supplied by any employee of FxPro, a third party or otherwise. This material has not been prepared in accordance with legal requirements promoting the independence of investment research and it is not subject to any prohibition on dealing ahead of the dissemination of investment research. All expressions of opinion are subject to change without notice. Any opinions made may be personal to the author and may not reflect the opinions of FxPro. This communication must not be reproduced or further distributed without the prior permission of FxPro. Risk Warning: CFDs, which are leveraged products, incur a high level of risk and can result in the loss of all your invested capital. Therefore, CFDs may not be suitable for all investors. You should not risk more than you are prepared to lose. Before deciding to trade, please ensure you understand the risks involved and take into account your level of experience. Seek independent advice if necessary. FxPro Financial Services Ltd is authorised and regulated by the CySEC (licence no. 078/07) and FxPro UK Limited is authorised and regulated by the Financial Services Authority, Number 509956.

Join Telegram