Bears have been ruling the crypto market for a while. Their return is more than possible in the nearest future, but right now bulls are celebrating a huge win. We recently talked about BTC breaking through the $20K resistance level on September 9 and taking roots above the new $21K support level on September 10. It was a nice recovery after a significant dip to $18.5K just a week ago.
The whole market may be recovering
It is hard to say whether the market is ready for the next Bull Run. However, we do see some positive development and encouraging changes in the crypto market. The BTC price surge was not a single event inducing optimism in the whole industry. We have been tracking ADA, ETH, and DOT as they performed quite well despite the crypto winter.
While many people are not happy with the current pumping of Terra Classic, it is still a good indicator that investors are interested in keeping money in the crypto domain. These are all reassuring dynamics that allow us to talk about a potential recovery with a little more hope.
On September 11, the market cap of the crypto industry broke through the $1 trillion barrier. It is a massive achievement! The result of the bear trend that started in May was the loss of over 60% of the value within just three months. The market cap exceeded $3 trillion just before the global recession. It was a massive hit to the crypto community and devastated some projects that were effectively starved of any funding.
Now, we see really strong indicators that the market is stabilizing. BTC grew by 9% and ETH managed to grow by 13% in 7 days. ETH is probably enjoying stronger growth due to the hype surrounding the Ethereum merge with the Beacon network.
This week is hugely important
Flagship tokens of the industry (BTC and ETH) broke through important resistance levels. Now, they must fortify their positions to ensure that there is a fundament for a new Bull Run. During this week, we will finally start seeing the results of the Ethereum merge and the resilience of BTC.
