Bitcoin is having a good run during the first two weeks of April. On April 12, a major breakout in price action happened propelling Bitcoin price from the $6,800 level to the $8,050 level, as can be seen from this chart on TradingView.com. Bitcoin even traded around the $8,450 level at one point meeting strong resistance at the $8,500 level. This big move breaks out of the major resistance line at the $7,900 level. As of press time, the price action of Bitcoin appears to be consolidating at the $8,100 level.
Total Market Capitalization
Some analysts fear that this might be another bull trap. If it is, we might see further drops in price action in the coming days. However, looking at the total market capitalization, we can see confirmation in the strength of volume flooding back into the cryptomarket. According to CoinMarketCap.com, we can see a spike in trade volumes on April 12 from $273 Billion to $300 Billion and eventually reaching $326 Billion as of press time. Looking at the chart, we may infer that the horizontal movement along the $250 Billion total market capitalization could be the bottom. If market capitalization continues to increase in the next weeks, we may see the start of the cryptomarket bull run.
Confidence in the Market
The flooding back of money into the crypto space is a good sign that investors are once again gaining confidence in the market. The last four months of crypto storm have weeded out the unwanted players in the market. However, we are not yet out of the woods as we still need to see further increase in total market capitalization, which would provide more fuel for the crypto market bull run to happen.
Despite the sea of green in the crypto market, be watchful of more FUDs that may come in the next few days or weeks. Remember that every time Bitcoin prices touched the major resistance, wild FUDs start spreading like wildfire, which consequently drive prices back. Although there is no concrete support for this, it is always recommended that investors stay safe and do educated trades.