Studying the crypto market, the founder of TechCrunch and Arrington XRP Capital, Michael Arrington, stated that he has never been more bullish on crypto as he is right now. The reason behind such a statement by Arrington has been the major investment firms in the industry, like Pantera Capital and Arrington XRP Capital, secured investments worth more than US$ 100 million to invest in emerging companies in the crypto industry.
Despite the strong performance of alternative cryptocurrencies, the price of Bitcoin has been the same tight range in the past 3 months and was unable to break out the mark of US$ 4,000 region since December 2018. The prolonged stability shown by bitcoin has worried technical analysts throughout March as the price of the topmost cryptocurrencies experienced a 50 percent hike in November 2018.
According to economist Alex Krüger, “Once price breaks US$ 4,200 it could increase higher. The key to the short-term prosperity of the crypto space is for BTC to cross the major resistance levels with strength.”
This confirms that the bitcoin has struggled to test any key resistance levels above the US$ 4,000 level.
While the analysis of technical indicators of bitcoin and the short-term projection of the dominant cryptocurrency vary, many developments in the crypto industry have shown that the asset class still remains relatively high following a 15-month bear market. In recent months, major crypto startups and leading companies have matured amidst one of the worst corrections in the history of the cryptocurrency market.
Developer activity and capital in the market have decreased, but they have been assigned projects and companies that build, execute, and grow, that will in return the cryptocurrency industry. Moreover, in many areas including valuation, developer activity, growth, and adoption, the crypto market has shown substantial potential in a dark period – wherein startups are facing difficulties to obtain new capital to survive – this can be considered as a positive indicator of long-term growth.
The valuation of the crypto market has dropped by nearly 82 percent from US$ 813 billion since January thereby offering investors with viable opportunities to enter the market with economic valuations of projects.
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