It would seem the next crypto bull run is looming on the horizon as the digital currency market continues to establish strong support. Enthusiasts still find themselves asking “will crypto recover? The market is expected to find a bottom eventually. This means there will likely be an influx of new capital. This comes as investors wait for Bitcoin and altcoins to initiate an upward movement confirming the next crypto bull run.
Through a critical analysis of the crypto charts, traders found a wide volume gap. The gap is lying above an overhead resistance. If this resistance position is broken, the price of Bitcoin and other digital assets will likely skyrocket in a bid to quickly fill the volume gap. Going by the gap’s distance, some crypto analysts were able to predict the amount of capital that may flow into the crypto space. They were also able to determine what such a rally will mean for the price of the leading digital asset Bitcoin (BTC).
Bitcoin (BTC) Price Today – BTC / USD
It isn’t Unreasonable To Expect an Influx of $70B Into the Crypto Market, Experts Say
It should be recalled that the peak capital influx in the last bull run resulted in the overall crypto market cap getting to $800B. This was before Bitcoin’s remarkable advance was cut short and altcoins plummeted by 80%.
When the Bitcoin price fell from the $6k support position in November of last year, it dragged the rest of the crypto market down. This caused a fall from the market’s $200 billion market cap to $100 billion. Since then, onward the total market capitalization has remained in the $130 billion resistance position.
$70B Influx on the Cards
However, one analyst believes that in the event that the resistance breaks, a $70 billion influx of capital may be in the cards. Because of the significant volume gap between the strong overhead resistance position and the next major resistance at the $200 billion previous support.
In financial markets, “the gap” is a common trade strategy. Gaps are “areas on a chart where stock prices move up and down sharply, with little trading in between.”
Going by Bitcoin’s Price Gap, a Price Shift to $6k is Not Unreasonable
Looking at Bitcoin’s price gap, we can spot a similar gap on BTC/USD price charts. This price gap indicates a distinct lack of orders in the current and previous trade ranges above the $6,000 position. $6,000 was the position Bitcoin (BTC) spent much of last year in.
This gap is also responsible for the swift decline after the digital asset broke the $6,000 support position. This forced the price of Bitcoin to drop by 50% from the low it attained during the previous bear market. In November 2018, BTC judiciously cut through the volume gap and put in what may probably be the bottom of the current bearish market
Will crypto recover?
If Bitcoin price breaks from the ascending position it currently is in, and its overhead resistance is broken as well, a $6,000 spike is a realistic possibility. This will be a sublime move that could take BTC into a new trade range. It will likely be the end of the current bearish cycle.
Will crypto recover? Please share your thoughts below.