The Bitcoin Zombie Rally<\/h2>\n
Alex Kruger, a leading crypto-friendly markets researcher and analyst, recently laid out the current state of the cryptocurrency market on Twitter. Through a 14-part thread, The economist, who hasn\u2019t been afraid to comment on Bitcoin in the past, laid out what is making the current crypto market tick, so to speak. Kruger first laid out a number of bullish catalysts, expressing the importance of the advent of institutional participants in Bakkt<\/a> and Fidelity, before noting that year-end manipulation to \u201cimprove metrics\u201d could push cryptocurrency values higher.<\/p>\n On the other hand, Kruger noted that are a number of negative stimulants that could further depress this market. These include, but are not limited to, the capitulation of crypto funds, the U.S. Securities and Exchange Commission\u2019s (SEC) latest spell<\/a> of token sale skepticism, year-end liquidations to \u201coffset [tax] gains,\u201d sell-side pressure from \u201cnatural\u201d\u00a0sellers, and the advent of zombie SAFTs (Simple Agreement for Future Tokens) finally coming to fruition after 2017\u2019s deals.<\/p>\n 9\/ So what’s up with this rally?<\/p>\n IMO the single most important factor is #3: Technicals. That is, this is a simple bounce from most oversold levels in history. Nothing for investors to FOMO.<\/p>\n Calling this the Zombie Rally, as most of those participating in it are actually dead.<\/p>\n \u2014 Alex Kr\u00fcger Kruger, specifically remarking on crypto\u2019s most recent bear market bounce, noted that technicals (technical analysis<\/a>) remain the strongest impetus behind price action in this nascent market. In his eyes, the past week has seen a majority of cryptocurrencies, notably EOS<\/a>\u00a0and Bitcoin Cash (BCH<\/a>), post double-digit gains due to a single indicator, this being the Relative Strength Index (RSI). According to Tradingview<\/a>, which cited data from Bitfinex, Bitcoin\u2019s one-day RSI reached its lowest level since Q3 of 2016 around two weeks back.<\/p>\n In other words, Kruger believes that the recent recovery is only a correction off oversold levels, rather than a fundamental shift in the fabric of this industry, like what Coinbase\u2019s president hinted at<\/a> during a recent CNBC \u201cFast Money\u201d guest appearance. Contradicting sentiment touted by optimists, the New York-based analyst noted that there isn\u2019t anything to \u201cFOMO\u201d about.\u00a0 So, referring\u00a0back to his thread\u2019s titlecard, Kruger dubbed the past week\u2019s price action, the \u201cZombie Rally,\u201d jabbing at the fact that many participating in this leg upwards \u201care actually dead.\u201d<\/p>\n He\u2019s either touching on the mindless \u201cFOMO\u201d attitude that has ostensibly driven this rally, or the fact that bots, which are simply responding to technical statistics, are pushing up the Bitcoin price.<\/p>\n Although Kruger was evidently making use of creative license to convey his point, data gathered by Crypto Quantamental indicates that this seeming \u201crelief rally\u201d could be far from \u201cdead.\u201d Crypto Quantamental, a U.S.-based, pro-Bitcoin investor, recently stated<\/a> that BTC is showing \u201cthe classic signs of a \u2018V\u2019 bottom.\u201d He\/she noted that the surge in BTC could be more than a \u201cdead cat bounce,\u201d as Kruger saw it. In fact, Quantamental noted that the \u201crecord-breaking\u201d volumes (in BTC count, not $) indicate that a long-term bottom may have formed. The investor explained that volumes have surpassed that seen in late-December 2017, when Bitcoin peaked at $20,000 in an unexpected turn of events. Volumes are even higher today than the bouts of selling pressure that BTC experienced on its trip lower. Per Quantamental, yesterday (Dec. 20) was Bitcoin\u2019s highest volume day in its ten-year history, with exchanges en bloc reportedly trading 2,226,735 BTC at an average price of $3,938.\u00a0This sum, for some much-needed perspective, is a tad more than 10% of all Bitcoin that will ever go into circulation.<\/p>\n Commentating on this move, Quantamental wrote:<\/p>\n \u201cRemember capitulation requires a large drop on massive volume, and the recovery of the \u201cV\u201d requires a large bounce on large volume. We have both here.\u201d<\/p><\/blockquote>\n All this, of course, could be a sign that cryptocurrencies won\u2019t be revisiting its yearly lows again. However, Quantamental, just like his\/her fellow analysts noted that it may be premature to call a bottom, as markets, especially crypto, can be unpredictable at times.<\/p>\n <\/p>\n The post Analyst: 25% Recovery In Bitcoin Price Was A \u201cZombie Rally\u201d<\/a> appeared first on NewsBTC<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"Related Reading:\u00a0Why Are Novogratz, Fidelity, And Bakkt Banking On Institutional Crypto Investors?<\/a><\/h5>\n
\n
![\"??\"](\"https:\/\/s.w.org\/images\/core\/emoji\/11\/72x72\/1f1e6-1f1f7.png\")
(@Crypto_Macro) December 20, 2018<\/a><\/p><\/blockquote>\nMaybe This Crypto Bounce Isn\u2019t So Dead<\/strong><\/h2>\n
![\"190903265-083ed9bcc62039f4f444df289f381ef6838330c5892eea105a4fc62cc6774ec6.png\"](\"https:\/\/insidebitcoins.com\/wp-content\/uploads\/2018\/12\/190903265-083ed9bcc62039f4f444df289f381ef6838330c5892eea105a4fc62cc6774ec6.png\")
<\/p>\nFeatured Image from Shutterstock<\/pre>\n