Bitcoin returns to $4,000, is a bull market coming? Wait until it returns to $4,600

Over the past week, the digital currency market’s market cap has risen from $131 billion to $137 billion as the price of Bitcoin edged back toward $4,000.

Insufficient new funds have caused currency prices to struggle

Compared with previous large fluctuations, Bitcoin prices have only fluctuated slightly recently, which shows that the existing digital currency market relies on existing funds for transactions, and new funds rarely enter the market.

A digital currency technical analyst named DonAlt said in an interview with CCN that there is a new optimism in the digital currency market, which may be mainly triggered by the surge in the price of Ethereum.

△In the past three weeks, Bitcoin prices have remained stable

However, he also emphasized: Unless Bitcoin breaks through $4,600 and reaches the range of $5,000 to $6,000, it is difficult to say that the bear market is over.

Market trading sentiment is rising, but why is Bitcoin not rising?

In recent weeks, the price of many digital currencies such as Litecoin has increased significantly relative to Bitcoin and the US dollar, with gains ranging from 20% to 100%.

Despite this, Bitcoin’s price remains stuck in the $3,800 to $4,000 range, unable to fully break through the key $4,000 resistance level for months.

Although Bitcoin trading volume has reached $11 billion in recent weeks and overall trading activity in the digital currency market has increased, DonAlt told CCN that he is not particularly concerned about Bitcoin trading volume.

He said: What really has a decisive impact is the price of Bitcoin. Only when Bitcoin breaks through $4,600 can it mark the end of the 15-month bear market. But so far, no new money has entered the market to bring about this price change.

However, although the price of Bitcoin has not changed much, the rise of Ethereum from US$80 to around US$160 has still greatly boosted market sentiment.

Therefore, many analysts are still bullish on the macroeconomic outlook. As long as the price of Bitcoin can effectively break through, the entire market will usher in a good rebound.

Source: CCN Chinese website