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The market data is provided by the HitBTC exchange.
The total crypto market capitalization has grown by about $30 billion in 15 days. This shows that the market is rebounding from its lows. Failure of the bears to break below the $5,900 mark in Bitcoin in the past few days has encouraged some buying by the bulls.
Various investment firms are launching new products in a bid to attract institutional players. This confirms demand from the larger market participants. However, it is too early to announce the start of a new trend.
Last time, the bulls were too eager to call a bottom and proclaim the end of this bear phase, but cryptocurrencies quickly gave up all their gains and plunged to new lows.
During the decline, Bitcoin managed to sustain above its critical lows, but most of the top altcoins broke below their support levels and made new year-to-date lows. Therefore, we want to wait and watch for the next few days before proclaiming the start of a new uptrend.
Bitcoin broke out of the 50-day SMA on August 28, which is a positive sign. However, the question now is: can the bulls sustain above the 50-day SMA? If the bears sink the price and keep it below $6,955.79, the current breakout can be considered a bull trap. The critical support on the downside is the 20-day EMA.
The next couple of days are critical as they will give us a better idea of whether the bottom is in place or this is just a dead cat bounce.