The Bitcoin gain back some of the losses from last week as it gained 2% for today’s trading. Towards the end of last week, the Bitcoin experience a pull back from a strong rally as a correction. Analysts are split, with some believing that a bullish trend is still far away while some believe that the strong rally from two weeks ago is just the beginning.
The End of the Bull Run
On the pessimist side, the analysts believe that last week’s dip marked the end of the crypto market’s rise. They come to this conclusion based the attitude of the market.
In the great bull run that the crypto enjoyed in 2017, was a constant and sustained with barely any sell offs. As a result, the Bitcoin saw prices that went over $20,000 at its peak.
This recent run that pushed the Bitcoin above the $5300 mark was immediately followed by a sell off. This shows that the bulls are not totally convinced yet. The Bitcoin recovered from losses but it is still a 17% loss in the last few days.
Analysts are aware that price bubbles like this occur before a bull run but they warn against believing that the bull run is here as there will still be pull backs along the way.
Brighter Future Ahead
For the analyst seeing a Bull run in the near future, the time may be right to see a Bitcoin gain back their highs. Crypto investors are excited for this crypto winter to end and the recent rally is an indicator of willing and excited investors.
The analytics arm of the exchange, Binance, studied the correlation between the Bitcoin and Altcoin and it shows the highest degree of correlation in the last five years. Past history suggests strong correlation between the main coin and altcoins prior to a breakthrough.
In addition to these findings, the drop to the $3100 level could be the support level everyone is waiting for. The new strong support could push the coin back to higher levels with investors thinking the worse is behind.