Bitcoin has shown signs of improvement lately, experiencing notable price gains and robust sentiment.
However, does that mean that the drawn-out bear market is over?
This piece will examine some market data, including price fluctuations and figures surrounding the sentiment of traders.
In addition, it will consider the input of several analysts.
[Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]
Bullish Market Conditions
Bitcoin prices have rallied lately, climbing more than 10% in roughly 24 hours, according to CoinDesk data.
The world’s largest digital currency by market value rose to as much as $3,975.89 earlier today, an approximately 11.4% gain from 24 hours prior.
During roughly the same time frame, the broader cryptocurrency market climbed 11% from $121.5 billion to $134.8 billion, CoinMarketCap figures show.
Strong Sentiment Data
These price gains have coincided with an uptick in market sentiment, according to data supplied by cryptocurrency analytics platform TheTIE.io.
“Daily sentiment on Bitcoin was positive beginning at around 12PM EST on February 15th preceding the upwards price movement. Daily sentiment peaked at 4:30 PM EST yesterday, and has remained strongly positive since then,” said Joshua Frank, cofounder of TheTIE.io.
“Today, tweet volume is 14.7% above its 30 day moving average, while trading volume is 61.1% higher than normal.”
The chart below illustrates the cryptocurrency’s price fluctuations and changes in sentiment.
The optimism of traders was apparent not only in Bitcoin, but also in other major digital currencies.
“Among the top 20 cryptocurrencies by market cap, 10 have daily sentiment which is either high or very high, while 10 have neutral daily sentiment,” said Frank.
“None of the 20 largest cryptocurrencies currently have negative daily sentiment.”
“Only 3 of the 50 largest cryptocurrencies: Decred, 0x, and Paxos Standard Token, currently have negative daily sentiment.”
Analysts Weigh In
While these signs may seem encouraging, several analysts threw cold water on the hopes that the crypto bear market has finally ended.
“While we are very optimistic about the long-term prospects of Bitcoin and the crypto market, we agree that the bear market is not quite over yet,” said Joe DiPasquale, CEO of cryptocurrency fund of hedge funds BitBull Capital.
He elaborated, stating that “We believe there will be a steady rise of Bitcoin through the year, passing $5K by the end of the year.”
“Once Bitcoin establishes a stable price level above $4,500 and possibly crosses $5,000, we can begin to believe that the bears have had enough,” concluded DiPasquale.
“I think it’s still too early to conclude that the bear market is over,” said Tim Enneking, managing director of Digital Capital Management.
“While BTC has risen significantly off its lows, it’s still below the $4.2k level hit in early January,” he emphasized.
Mati Greenspan, senior market analyst for social trading platform eToro, provided a similar view.
“Investors are questioning whether or not the bear has finally retreated,” he emphasized.
However, “the bear market is still very much in play.”