Even a quick glance at the crypto market reveals a much nicer picture than the one we lived with for the last week. The wide cryptocurrency market rebound started this morning when the total market capitalization went from $149 to $176 billion. This is an 18% daily growth which reminds us of those glory days of 2017.
Meanwhile, Bitcoin (BTC) slowly accumulated for the rally at $5,200. In less than 24 hours the biggest cryptocurrency went up to the current $6,260, making a healthy 19% increase. Nevertheless, the surge still fails to attract any significantly bigger trading volume. This can be a reliable sign of the market still unable to decide the future trend.
The (Almost) All-encompassing Rebound
Since Bitcoin is still the pivotal coin of the crypto market, it pulled prices of altcoins along with it. Thus, the best performing top 10 cryptocurrency, BitcoinSV (BSV) brought a nice 39% profit for its investors. BSV surged from $124 to $167 in an hour and a half. However, there are those cryptocurrencies that outscored Craig Wright’s Bitcoin fork.
Among the 50 biggest cryptocurrencies according to CoinMarketCap, the biggest gainer was Steem (STEEM). The coin which fuels the decentralized social media platform Steemit went from $0.12 to $0.39 in a little more than a day. Just so our readers don’t have to calculate themselves, it is a 225% increase in valuation.
Naturally, coins with much lower liquidity made some insane profits during the last 24 hours. For example, a cryptocurrency dubbed Bitball Treasure (BTRS) skyrocketed 7,337% (yes, seven thousand three hundred and thirty-three percent) in a single day. Further down the gainers’ list, we have Streamr DATAcoin with +282%, Bazooka token (BAZ) with 208%, and Numeraire (NMR) with 169%.
If you haven’t heard or any of these coins, do not despair because only NMR is among the top-100 club.
On the other side of the scale, there were a few cryptocurrencies that, despite the overall short-term bullish sentiment, recorded some significant losses.
The worst performer was WhiteCoin (XWC) with a devastating 71% decline. Close beside XWC are two leveraged tokens tied to the prices of Binance coin (BNB) and Ethereum (ETH) with 51% and 50% decline respectively.
The Cryptocurrency Rebound Overloads EOS For the First Time
The cryptocurrency market rebound revealed some possible future issues with the EOS network.
The smart contract platform and decentralized operating system, while scoring a nice 18% rise in valuation, got on the verge of congestion. According to data presented by the specialized portal Block’tivity, EOS processed 114,751,765 operations in a day (1,328 operations per second). This is 3700% more than the next most used blockchain, Stellar (XLM) with 3,468,711 daily operations.
This stressed-tested the EOS DPoS (Delegated Proof-of-Stake) system to almost 90% usage rate. However, take note that not all of these operations are trades or financial transactions. Nevertheless, it seems that EOS is doing its job as a form of world computer for decentralized applications production – developers keep building on it.
Can the Cryptocurrency Market Rebound Continue?
To answer this question, we have to take a look at the state of the global markets.
Ravaged by the coronavirus panic, traditional markets are losing value by the hour. The most obvious indicator of the widespread negativity is the Dow Jones Industrial Average (or just Dow) stock market index which represents the performance of 30 big corporations on US stock exchanges. Dow lost 31% during the last month without any sign of a possible recovery.
Considering these circumstances, cryptocurrencies are doing extremely well. Yet, the absence of a noteworthy volume makes us advise serious caution during trades. Moreover, the situation on the biggest cryptocurrency derivatives trading platform, BitMEX, is worrying, to say the least. The BitMEX BTC/USD 1hr perpetual chart below reveals that, despite the rising Bitcoin price, the Open Interest indicator is declining.
Since the rising Open Intrest indicates the influx of new money, sadly, we have to conclude that it is highly possible that we are witnessing a situation better known as dead cat bounce.
However, there is still hope.
Besides the obvious development in the EOS blockchain ecosystem, there are more favorable fundamental conditions for the cryptocurrency market in the coronavirus-stricken global economy.
As we already forecasted, governments are trying to rescue what’s left of giant corporations by printing insane amounts of cash. According to some sources, these are the approximate amounts of new money issued by central banks (in billions):
- Federal Reserve – $700
- European Central Bank – €750
- Bank of England – £400
- Bank of Japan – ¥12,000T
- People’s Bank of China – ¥550
- Bank of (South) Korea – ₩11.700
Needless to say, while the move may provide temporary relief for big businesses, this desperate action is bound to leave deeper scars in the global economy. It is during these times that people should, naturally, seek an alternative. Currently, the only valid option that can also act as a means of payment is crypto.
Besides fundamental reasons, there is one of a technical nature. The 200EMA (Exponential Moving Average) on a BTC/USD weekly chart is once again below the price of Bitcoin. For those unaware, 200EMA on a weekly chart is the king of support and resistance. Therefore, if Bitcoin manages to stay above the water, it has a good chance to bounce back of the 100EMA line towards the $10,500 peak.
While these positives can be comforting for crypto investors, there is still at least an equal amount of negative indicators in the cryptocurrency market. The closing BTC/USD price on Sunday may provide more answers. Until then, keep track of the open interest and volume in search of any kind of market prediction.
Of course, read CoinSyncom since our technical analysis team is as accurate as possible.
When you start feeling the irresistanbe urge to share our content and click on one of the icons below, you’ll be rewarded with Sharpay (S) Tokens. Now, ain’t that cool or what? Getting paid for sharing!! Of course, to receive your tokens, you’ll need a Sharpay crypto wallet. Therefore, first you need to register on Sharpay’s OFFICIAL WEBSITE and the wallet is there.
Thanks for sharing!