Entire Crypto market is bottoming out
- Author Name : IMR
- Publish Date : March 9, 2019
With this development, we looked at the total crypto market cap to look for reversal signals. What we saw strongly suggested that the bear market may be coming to an end. In this article, we reveal the signals indicating that the entire crypto market is bottoming out.
Bounce at Parabolic Support
If you’ve been following our trade recommendations and crypto updates, one emerging trend was the reliance of many altcoins on their parabolic support. In other words, these altcoins have more or less given up all of their gains from the 2017 bull run.
Take for example Litecoin (LTC/USD). The market range traded between $20 and $30 from May to June 2017. When the market took out $30, it flipped it into support in September 2017. This price action ignited the parabolic move that saw Litecoin climb as high $374.888 in December 2017. A year later, Litecoin relied on the same $20 to $30 range to bottom out and possibly reverse its trend.
Significant Rise in Volume
During a bear market, volume gradually decreases as demand dissipates over time. Demand eventually returns when participants deem that price is low enough to provide significant upside. Interestingly, that is also often the point when investors lose hope in recovering losses so they sell at a loss. As a result, volume surges as investors capitulate while bargain hunters and bottom pickers scale in.
We are seeing this play out in the total market cap. At the height of the 2017 bull market, the weekly volume average was between 200 billion and 300 billion. As bears took over the market, the weekly volume dropped. It even plunged to as low as 76 billion in August 2018.