Is the crypto winter really over?

The crypto world has been suffering from this crypto winter for several months now and is desperate for bullish signals to start a new uptrend. Is the bear market finally over?

How should Bitcoin evolve to end the crypto winter?

As the cryptocurrency market gradually rises from the ashes, investors, especially the most reticent, are looking for key positive signals that would indicate a trend reversal. At the time of writing, Bitcoin broke above a resistance zone and is now trading around $23,600.

While some analysts point to $25,000 as a first move, others recall that any resistance will be hard to break. This, even if market sentiment evolves positively, with renewed euphoria on Twitter or the release of “extreme fear” within the Index of fear and greed.

Among the trending topics related to the cryptocurrency sector and the crypto industry in general, we find several of the digital assets that have been trending in recent days such as the Matic token, Shiba or market sentiment terms such as “FOMO” (fear to miss something).

This decisive end of the month for the price of Bitcoin?

According to Edward Moya, an analyst specializing in the cryptocurrency market, Bitcoin’s price should hold for about two more weeks before the current bear market ends. For the analyst, the market has become a little more interesting as the economic context has not brought unexpected negative news, and this could be beneficial for crypto assets.

The fear seems to have temporarily left investors, and this trend is sure to be confirmed in the coming weeks. Investors would gradually fall in love with positive sentiment with an optimistic outlook on inflation, the Fed’s measures and interest rates, or even the US economy. All the more so since the recession has been ruled out for the time being, according to the official discourse of the White House.

At the same time, some tokens such as Ethereum or Matic from Polygon have experienced a surge of nearly 50% for the first and over 130% for the second. High-flying performance, especially in the midst of the bear market.

This, even though the market seemed to be going through its worst hours with unsustainable price drops for investors and increasing bankruptcies within Cefi or investment funds,

For the analyst, observing and analyzing investor reaction to industry news is one of the keys to predicting the end of a bear market.

“If the market starts to react positively to negative news, it’s a signal that a bottom may be reached, as fear can cause the news to be priced in.”

For analyst Moya, it is also paramount that more institutions purchase Bitcoin in the coming weeks. This would allow Bitcoin to continue its trend and at the same time mean that the bottom has already been reached. A bottom that is currently around $17,500 and will be reached in mid-June.

The DXY down, a good point for cryptocurrencies

At the same time, the US dollar index (DXY) is still at a high level, but has fallen slightly. Indeed, from its top of 109.5, it is now locked in at 106.99 (at the time of writing) and showing no signs of recovery yet after a rejection at the market levels of 107. This index is very important, as the cryptocurrencies of that Bitcoin first-line strengthen when the dollar weakens. At the moment, however, the dollar is very strong, even internationally where other currencies such as the euro, the pound and others are struggling.

For a confirmed trend reversal and the initiation of a solid bullish structure, it will take Bitcoin for the DXY to decline further thereafter.

In fact, even if the short-term trendline is bullish, the longer-term charts aren’t showing the same signs yet.

Source : Twitter

So even if there are glimpses of positive signals, it is still necessary to be careful as this recent “pump” can still be completely reversed. However, the cryptosphere can only look forward to these bright spots, marked for once by an increase in volumes.

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