• Bitcoin and select altcoins have risen above stiff overhead resistance levels, signaling that the bottoming process may have begun.
• Glassnode data suggests that the foundation for a macro bottom in Bitcoin may be in place.
• Ether is also witnessing signs of accumulation, with the number of Ether sharks rising by 3,000 since November 22.
The cryptocurrency market is on the rise again, with Bitcoin and select altcoins showing signs of a potential bottom. On Jan. 12, Bitcoin surged above $19,000, the highest level since November 8. This is a positive sign that the bottoming process may have begun, and there is a growing sentiment that a bull market may not be far away.
Glassnode data suggests that the foundation for a macro bottom in Bitcoin may be in place. According to the on-chain analytics firm, 13% of the Circulating Supply returned to profit when Bitcoin rallied to $18,200. This suggests a large phase of accumulation took place in the $16,500 to $18,200 range.
Along with Bitcoin, Ether is also showing signs of accumulation. The number of Ether sharks, holding between 100 and 10,000 Ether, has risen by 3,000 since November 22, according to Santiment data. This suggests that traders are accumulating Ether in anticipation of a possible uptrend in the near future.
In addition, altcoins such as Binance Coin, XRP, Cardano, Dogecoin, Matic Network, Polkadot, Litecoin, and Uniswap are also showing signs of recovery. Binance Coin broke out of a descending channel on Jan. 12 and is currently in a strong uptrend. XRP is also in a strong uptrend and it has risen above the $0.3000 resistance.
Many traders may be missing out on the current uptrend because they remain in denial. To catch a trend early, traders should keep a close eye on the price action. A sequence of higher highs and higher lows may indicate a bullish sentiment in the market.
Overall, the cryptocurrency market appears to be on the path of recovery. Bitcoin and select altcoins have risen above stiff overhead resistance levels, signaling that the bottoming process may have begun. Glassnode data suggests that the foundation for a macro bottom in Bitcoin may be in place, and Ether is also witnessing signs of accumulation. Altcoins such as Binance Coin, XRP, Cardano, Dogecoin, Matic Network, Polkadot, Litecoin, and Uniswap are also showing signs of recovery. To catch a trend early, traders should keep a close eye on the price action and look for a sequence of higher highs and higher lows.