The number one cryptocurrency, Bitcoin (BTC) has returned to trading above the $9,000 level on Thursday, March 5 on a bullish run that saw it rise from the $8900 level to nearly $9100 in a single hour of trading. Tezos (XTZ), the 10th most valuable crypto by market cap leads the rest of the altcoins on the current rally with double-digit gains.
It’s been one heck of a rollercoaster week for the global financial market as traded assets continue to see red across the board amid the coronavirus pandemic. Even the U.S. Federal Reserve was forced to slash interest rates in a bid to bolster the trembling market. But better days seem to be ahead as the markets have started to rise again, albeit slowly and that includes the cryptocurrency markets.
In a stunning rally, Bitcoin’s market value rose by almost $200 in one hour of trading. At the time of writing, the price of BTC is testing the $9150 support levels with a possibility of growing higher to the $9280 and $9450 support levels should the bulls maintain momentum in the near term.
This recent rally is preceded by a failure of the bears to defend a key support level below the 200-day average at $8,720. Prior to this change, Bitcoin sellers had been leading the price action over the last few days, posting prices as low as $8,660. Bitcoin has now formed a support base above the USD 8,850 level and a bigger bull move may be on the horizon.
Tezos at the Helm of Altcoin Rally
Whether fueled by Bitcoin’s price breakout or due to other factors, Tezos went up by 13% on Thursday making it the best performer for the day among the top 10 crypto assets. Like Bitcoin, Tezos had also been seeing a strong sell-off over the past few days, dropping 20% in a 48-hour period, however, Thursday’s rally put an end to the sell-off and returned the market to green territory, at least for the time being.
On a more recent market snapshot, however, Ethereum, Bitcoin Cash and EOS are leading the pack of altcoins recovering from the brutal price drop over the last 24 hours, posting gains of over 3%.
What prompted this bull run?
Crypto bulls appear to have been prompted by positive news regarding cryptocurrency space, such as India’s Supreme Court overturning the 2-year crypto ban in the country, as well as South Korea’s National Assembly passing the motion to legalize crypto. Asia has always been integral to the mass adoption of cryptocurrencies so these recent developments may have swayed market sentiment favorably.
Additionally, Germany recently classified Bitcoin as a financial instrument, citing the fact that several institutions across the globe define BTC the same way and therefore the number one cryptocurrency may be used as a means of payment and exchange, traded, transferred, and stored in its digital form.
What’s your take on this recent bull run? Can the Bitcoin market return to $10k price levels in the near term or are we headed for more turbulent waters?
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