• The cryptocurrency market began 2021 with a surge that has surprised many traders and investors.
• Bitcoin and Ether have breached some impressive critical support levels, leading to newfound excitement in the crypto community.
• Despite the overall decent gains, many market experts are warning that the bear market may not yet be over, making this a ‘disbelief phase’.
The beginning of 2021 has been an exciting time for the cryptocurrency market. After a prolonged bear market that lasted for much of 2020, the crypto market has seen a surge that has surprised many traders and investors. Bitcoin, the world’s largest cryptocurrency, has breached some impressive support levels and is currently hovering around the $22,650 mark. Not only that, but the global crypto market cap recently exceeded $1 trillion for the first time in a while.
This newfound optimism has led to a wave of excitement in the crypto community, as traders and investors rush to make the most out of the bullish action. However, while the gains are certainly welcome, many market experts are warning that the bear market may not yet be over. This is known as the ‘disbelief phase’, and it is characterized by traders who are skeptical of the current bull run, as they wait for confirmation of a full-scale market recovery.
Ether, the second-largest cryptocurrency in terms of market cap, has also seen its fair share of gains. After a massive spike that saw it reach the $1,500 resistance level, Ethereum is only down by 1.6% in the past week. This is a significant improvement from the prolonged bear market that saw Ether drop to as low as $360 in 2020.
It is important to note that, while the crypto market has certainly seen some impressive gains, the bear market may not yet be over. Market experts such as Toni Ghinea have noted that a sustained market recovery will depend on the continued growth of Bitcoin and other major cryptocurrencies. Additionally, the market will need to see a significant increase in institutional investments, as well as increased government regulations, in order for the crypto market to make a full recovery.
Until that happens, traders and investors should continue to exercise caution when investing in the crypto market, as the bear market may still be in effect. By staying up to date with the latest news and developments in the crypto space, traders and investors can make informed decisions and navigate the market more safely.