Unraveling The Technicals And Fundamentals Behind Crypto’s Surge

Amidst the pandemic-induced economic recession, many retail investors and optimistic individuals gritted their teeth and saw this as the opportunity to make the most out of a bad situation with suitable investments and diversifying their portfolios. As a result, many of those that held onto their tech stocks and bought alongside the dip are now emerging with excellent returns on their investments, given the economic recovery experienced in 2021.

However, while we’ve managed to hit quite the rough patch these past few months as market volatility and waning confidence overshadow overall market sentiment, cryptocurrency has been outperforming expectations and recently experienced a sudden bullish run. And so, today, we’ll be learning just what’s causing the sudden bullish momentum for the crypto market and how we can stand to benefit from this rally moving forward.

What’s Causing The Surge In Prices?

To put things into context, many had believed the cryptocurrency market to have peaked around three months ago and expected the bearish incentive to continue for the rest of the Q3 as coins test their support and gauge the market feedback on the legal crackdown and soon-to-come imposed regulations. However, in just the past two weeks, many well-established cryptocurrencies have been on the rise and setting weekly highs, seemingly breaking past areas of resistance with ease, reaching a $2 trillion market cap.

  • Testing Key Areas Of Support And Resistance: In terms of technical analysis, the historical trend of most well-known cryptocurrencies have just established their lower-high on the weekly, and now aiming for a higher-high past their previous target prices. And if we are to use Bitcoin as an example, if it tests the resistance at around $49,000 and is able to go past that, then the bullish rally might still have a long way to go. Of course, all of these remain speculations, but if their current performance is to be utilized as indicators, then this momentum does fall in favor of bullish sentiment.
  • Ehtereum’s London Hard Fork: As per the fundamental side of things, Ethereum’s London Hard Fork upgrades have been nothing short of positive, and now that it’s burning coins and paving the way for more reliable and predictable transaction fees, it has allowed the coin to surge these past weeks. It had reached a peak of $3,335 just days ago, and it won’t be long until it builds up even more momentum and pushes the rally even further. Plus, if the current run remains sustainable until the change to Ethereum 2.0, this would compound the current bullish movement as the currency cuts down on its overall energy use.
  • Walmart Also Interested In Cryptocurrency Experts: We’ve already heard of the news of Amazon’s job posting for experts on cryptocurrency and leads to be welcomed onto their team, but it seems Walmart won’t allow being left behind as the company shows growing interests in employing cryptocurrency experts as well. Of course, there’s still no guarantee on the details surrounding the position because both companies have yet to release an official statement, but it does prove that many retail business sectors are planning for a future roadmap that integrates cryptocurrency.

buying crypto using cellphone

What Does This Mean For Retail Investors And Small Enterprises?

Given the current animosity running the global markets amok and with economic activity caught between a rock and a hard place, the news of cryptocurrency surging and doing its best to maintain a bullish run provides both retail investors and small enterprises an opportunity to invest and scale their operations to become pioneers. And while the thought may appear largely optimistic considering our current circumstances, we can’t deny that these possibilities were first regarded as impossible just some years ago.

  • Safeguard Against Stock Market Bubble: Stocks remain the most reliable method of investing your money and growing your capital over a long period, but while this truth remains applicable even in our current situation, the data points to the risk of a stock market bubble about to pop and come crashing down. Therefore, being able to diversify your investments through cryptocurrency will allow you to safeguard your capital and maintain any current obligations from basic necessities and home mortgages.
  • Potential Future Integration: As we’ve mentioned before, potential future integration of cryptocurrencies as regular modes of payment might be coming sooner than expected, and with major companies such as Amazon, Walmart, and Tesla experimenting with them, it only further supports the notion. Of course, while we don’t expect every small business to start accepting Dogecoin, now is your best bet to experiment as well with what’s possible and what you could work towards.

Navigating The Markets Requires Vigilance And Diligence

Overall, despite how opportune of an investment cryptocurrency appears today, we want to remind everyone that navigating the market still requires active vigilance and due diligence on the part of the investor. So, don’t go expecting to make the return of your lifetime and practice your risk appetite with the right perspective as well.

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