Bitcoin rallies: Have cryptocurrencies found a breakthrough?

  • by Ahmed Mamdouh
  • April 2, 2019, 17:14 AM
  • 287 Views
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Cryptocurrencies, led by the Bitcoin, rallied on Thursday, breaking three months of calmness, to raise a key question: Have cryptocurrencies finally found a breakthrough?

Following a calm first quarter, the Bitcoin gained more than 15 percent to trade around $4,753 on Binance after hitting a peak of $4,837.1, the highest level since November last year.

Among the top 10 digital currencies in terms of market capitalization, Bitcoin Cash, Cardano and Litecoin reported the biggest gains with 15.16%, 14.61% and 13.62% respectively, according to CoinMarketCap.

While 2017 was the year of tremendous gains for cryptocurrencies and the 2018 was dominated by downside corrections, this year saw a tranquil trading during the January-March period, as large institutions announced plans to enter the crypto market and many governments all over the world have started regulating cryptocurrencies activities.

It seems that many analysts are currently convinced that Bitcoin price has reached its floor and it is the time to start a new bull run, especially after the breach of key resistance located at $4,200.

After nearly 75 percent fall in Bitcoin last year, it is reasonable to claim that the market is becoming more mature, but this may mean lower volatility and moderate gains for investors, who are used to strong jumps in virtual currencies prices.

So far, the largest cryptocurrency, has shot up by more than 38 percent since the beginning of the year.

The U.S. Securities and Exchange Commission (SEC) is still reviewing several applications for a Bitcoin Exchange Traded Fund (ETF), noting that the SEC’s consent could trigger further gains in crypto prices.

Ahmed Mamdouh

Ahmed Mamdouh is the head of the English Fundamental Analysis at Ofeed.com, with 11 years of experience in the financial markets. Mamdouh holds a Master’s Degree in Economics from the American University in Cairo and a Bachelor Degree in Economics from the Faculty of Economics and Political Science, Cairo University.

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