The market psychology is the prevailing sentiment of the participants that regulates the buy and sell orders. Until January the cryptocurrency traders were waiting for a bottom to set it in. In comparison with the 2014-2015 bear cycle, a couple of bottoms were predicted for Bitcoin; bottom at $2700 and $2100 level being the most famous calls. However, contrary to popular belief the price of Altcoins especially Ether and Litecoin have gained 100% since December.
Did the Cryptocurrency Market Bottom in December?
The Altcoins including Ether (ETH), Litecoin (LTC) and XRP too were expected to follow Bitcoin’s bearish momentum. The bottom was supposed to form after the same duration of time as it did in 2014. However, the market enthusiasm and broader acceptance rate this time around might have kicked the bottom in December only.
Litecoin Price on December 15 was $23. Similarly, Ether (ETH) Price on December 15 was $82.8. The total market capitalization of the cryptocurrency markets had reached $100 billion before the trend reversal began. While XRP and XLM still trade in the lower range of $0.295-$0.315 and $0.080-0.085 range, Ether and Litecoin prices have doubled since then. Bitcoin is still trading in the $3000-$4000. Nevertheless, a break out above the $4700 and $6000 would firmly confirm the revival of bullish momentum.
Litecoin And Ethereum Gain on Fundamental Developments
Litecoin is currently trading at $55, the bullish momentum in Litecoin can be attributed to the Litecoin Foundations conviction to add fungibility to its protocol. On the hourly chart, the 100-Day SMA crossed the 200-Day SMA line which is termed as a ‘golden cross‘ by the traders.
LTC/BTC chart: Comparison of two golden cross characteristics
The last instance of this cross was observed during the beginning of the year 2017 on the LTC/BTC chart.