Bitcoin, Ethereum, Litecoin, and EOS have all experienced a sudden rally in the last seven days.
Bitcoin is up 9.84%, Ethereum is up 21.24%, Litecoin is up 23.13%, while EOS is up 35.72%–see Table 1.
7d Price Change For Major Cryptocurrencies
Source: Coinmarketcap.com 2/20/19 at 7:10 p.m.
That’s certainly music in the ears of cryptocurrency investors on the long side of the market.
And there are a couple of signs that the rally may be sustainable. One of them is that there is “breadth.” The rally extended to the entire cryptocurrency chain. Only seven cryptocurrencies out of the top 100 dropped in the last seven days, while 93 advanced—see table 2.
Number of Cryptocurrencies That Advanced/Declined In The Top 100 Ranks
That’s something market technicians see as a confirmation that the rally has strength. It suggests that new money is flowing into the entire sector rather than old money rotating from one coin to another.
“Interestingly, it appears that the momentum behind the recent Bitcoin rise comes more from fiat and stable coins than from other cryptocurrencies,” says Michael Noel, CEO Blockchain Consultants. “This move from Fiat currencies shows at least some consensus that BTC value, is better long term than in traditional currencies.”
Adding to the technical momentum of the cryptocurrency rally is enterprise interest in Blockchain projects, according to Noel. Like a partnership between Mastercard and the fintech startup Stellar, a Western Union and Ripple project, and the introduction of a NASDAQ Bitcoin index.
And there’s growing acceptance of Bitcoin among institutional investors, according to Jeff Ramson, Founder and CEO of PCG Advisory, Inc. “Each day we are hearing of more well-known fiduciaries, banks, funds, etc. investing into crypto/blockchain infrastructure, and I believe Bitcoin is the proxy for most who want to have exposure to the crypto asset class, while these markets develop,” says Ramson.
An example of this is the news last week that JP Morgan is implementing its own cryptocurrency. “While not significant to the price of Bitcoin, in reality, this also has given additional credibility to the space, which is helping with the price of Bitcoin; and I believe, this acceptance will help sustain the crypto asset class for the long run,” adds Ramson.
Provided that Bitcoin breaks two key “resistance” levels, $4000, and $4800, according to Henry James Fincross, International Deputy CEO & CSO.
[Ed. note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment. Disclosure: I don’t own any Bitcoin.]