Although the cryptocurrency market cannot be completely bullish and break new records in terms of profit and growth but one thing that seems obvious is that the overall bear market is beginning to end. Over the past few weeks and months there have been much more positive sentiments.
Much of this was due to the fact that several altcoins created a good mood in the market. Thanks to the positive news from a number of top 20 coins, their own value of tokens is growing. Out of 20 largest cryptocurrencies by market capitalization according to CoinMarketCap, the BTC and USD pairs of Litecoin, Binance Coin, Tron and Maker are currently trading above their respective 200-day moving averages.
Now there is a technical analysis that suggests that coins like Litecoin, Tron and Binance Coin are trading above their 200-day moving averages, which is usually considered a sign of a healthy market. This is good news across the board, but it is also interesting to see if Bitcoin can keep pace and beat altcoins or potentially fall behind, providing real altcoin season.
A moving average is simply the current calculation of the closing prices of an asset over a certain period of time, but is also a tool that traders use to assess the direction of the trend of the asset, as well as support and resistance levels.
These positive steps reinforce the notion that the cryptocurrency market is moving for the better again. However, Bitcoin, as the head and driving force of the cryptocurrency market, still trades below its 200-day moving average which may also be the reason that people are skeptical about returning to the market.
While Bitcoin was often the catalyst and engine of market direction, there were times when the rest of the coins took responsibility for the direction of things. Altcoins, making big moves, help support the market.