• Bitcoin and select altcoins have risen above stiff overhead resistance levels, signaling that the bottoming process may have begun.
• Glassnode data suggests that the foundation for a macro bottom in Bitcoin may be in place, with 13% of the circulating supply having returned to profit.
• Ether is also witnessing signs of accumulation, with the number of Ether sharks rising by 3,000 since November 22.
The cryptocurrency market has been on a roller coaster ride over the past few months. After hitting an all-time high of almost $20,000 in December, the prices of Bitcoin and some major altcoins plummeted to yearly lows in January. However, the bulls are now back in action and the prices of Bitcoin and various altcoins have risen above stiff overhead resistance levels, signaling that the bottoming process may have begun.
The leading cryptocurrency Bitcoin has been on a steady climb over the past few days and managed to breach the $19,000 level on January 12. This is the highest level since November 8, suggesting that the bulls are firmly in control. Analysts are now predicting a bull market for Bitcoin, with Glassnode data suggesting that the foundation for a macro bottom in Bitcoin may be in place. The on-chain analytics firm tweeted on January 12 that 13% of the circulating supply had returned to profit when Bitcoin rallied to $18,200. This is a clear indication that a large phase of accumulation took place in the $16,500 to $18,200 range.
Ether, the second-largest cryptocurrency by market cap, is also showing signs of accumulation. According to data from Santiment, the number of Ether sharks, holding between 100 and 10,000 Ether, has risen by 3,000 since November 22. This is a positive sign, as it suggests that traders are accumulating Ether in anticipation of a bull market.
Other major altcoins such as Binance Coin (BNB), XRP, Cardano (ADA), Dogecoin (DOGE), Matic Network (MATIC), Polkadot (DOT), Litecoin (LTC) and Uniswap (UNI) are also trading in the green, with many of them making higher highs and higher lows. This is a positive sign for the market and could be the first indication of a new uptrend.
Therefore, traders should keep a close eye on the price action of these cryptocurrencies to get a better idea of where the market is headed. If Bitcoin and select altcoins continue their current uptrend and break above their respective overhead resistances, then the bulls may be on their way to reclaiming control of the market.