Is the bear market over? Or is this week’s rally just a bull trap? The next few days are likely to determine the long-term outlook for the sector. Over the last 24 hours, prices for Bitcoin, Ethereum, and most of the major coins have been flat while the altcoin market has grown to represent a greater share of the sector. The total cryptocurrency market is now worth $324 billion, with Bitcoin dominance down slightly to 41%.
Bitcoin and Ethereum
Bitcoin recently broke out of the descending channel pattern it held for several months, and this could be the start of a bullish reversal. However, there was solid resistance at the $8500 level, and prices have now pulled back below $8,000. Prices need to break past resistance at $8,500 for the bear market to officially be over. This is an inflection point in the market, and the next few days are crucial.
Ethereum is in a similar situation as Bitcoin. The asset recently hit monthly highs around $540 before correcting support levels at $525. ETH now tests major support levels at $500 which is much lower than we would like to see in a full-fledged recovery. If prices break below $500 – to the $480 fib retracement, perhaps – that would be a very bad sign. The bulls are hoping for a surge above $550 which would represent a major positive signal and the official end of the bear market.
Altcoins: EOS, Stellar, & Dentacoin
Among the top ten, EOS and Stellar Lumens have both performed well, both up by around 5% to market caps of $6.85 and $5.60 billion, respectively. Further down a line, a little-known token called Dentacoin (DCN) has staged a massive rally of 35% in the last 24 hours, giving it a total market cap of around $175 million. Dentacoin’s rally follows months of steady decline.
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