Bitcoin, the flagship cryptocurrency, has recently seen its price drop to little over $3,900, as the rally that saw it rise well over 10% in a few days has seemingly started stalling. Some analysts believe remaining at this level would still be a bullish sign.
According to CryptoCompare data, BTC has recently managed to surpass the $4,000 mark for the first time in six weeks, but its price started dropping soon after. At press time, BTC is trading at $3,950 after losing 0.6% of its value in the last 24-hour period.
Other cryptocurrencies, including Litecoin, EOS, Bitcoin Cash, and Ethereum, have also seen their prices rise this week. What exactly was behind the crypto market’s rally is unclear. Some have claimed mainstream investors are entering the market, while others have pointed to JP Morgan’s JPM Coin as a reason for the rally, claiming it was a delayed reaction.
Institutional investors are believed to enter the market once a bitcoin ETF is approved. Currently, the SEC has two proposals on the table. The rally, however, is noticeably stalling, as most cryptos are down for the day, with the exception of a few, including Binance Coin, thanks to the launch of the Binance DEX’s public testnet.
Litecoin, a cryptocurrency seen as the silver to bitcoin’s gold, is notably up over 6% in the same period. Behind its rise appear to be groups on Chinese social media platform WeChat, which have reportedly been constructing a narrative around Litecoin’s halving event, expected to arrive in 168 days.
Although the crypto market rally is losing steam, most appear to remain bullish. According to a poll conducted by eToro senior market analyst Mati Greenspan, out of 355 respondents 30% believe cryptocurrencies will continue surging, while only 14% see it sustain current levels.
⚡QUICK POLL ⚡
The Crypto Rally has stalled. Will it….?
— Mati Greenspan (@MatiGreenspan) February 20, 2019
About 27% claimed the crypto market will retrace back to its lows, while 29% admitted they don’t know what’s going on, or just voted to see the results. Speaking to CryptoGlobe, Greenspan noted he also isn’t sure where the market is going.
Nevertheless, he noted that a retracement would be normal after such a price rise, although sustaining current levels for a few days would be a “very bullish sign.”
After this type of price move a retracement would certainly be normal, but if it even just sustains these levels for a few days it would be a very bullish sign indeed.
Despite the recent pullback, positive news have kept on coming. Elon Musk, a co-founder of PayPal and the CEO of Tesla and SpaceX, has recently revealed he believes bitcoin is “quite brilliant,” and also gave Ethereum some merit. Bitcoin’s rally has seen it get on track to record the first green monthly candle in over six months.