The debate about the currently ongoing bear phase in the crypto market is going on for quite some time. While many experts believe that Bitcoin is slowly moving towards the bullish phase, others are still skeptical about the waning effect of bearish sentiments. Joining the debate lately is one of the well-known economists and crypto analysts, Alex Kruger who said that Bitcoin would enter into the bull phase if it can successfully break through the resistance level of $4,200. Once the valuation exceeds the aforementioned mark, it can be safely regarded that Bitcoin has finally come out of woods. In fact, Kruger argued that the bear market for Bitcoin is already over for more than three months now and going above the level of $4,200 will ensure the onset of bullish phase for the coin.
Bitcoin Price Analysis
If we analyze the value of Bitcoin for the last three months, we can easily find that its prices kept on hovering in the range of $3,400 – $4,000. More importantly, some of the last few days Bitcoin has struggled to go past $4,000 with its value remaining around $3,800 mark. In a technical term, the end of the bear market means that an asset has broken above its previous lows while showing significant signs of high movements. This is exactly the case with Bitcoin, and that’s why it is believed to be approaching the bullish phase given that it goes past $4,200. In other words, to confirm that finally, the bear phase is over for Bitcoin, this largest cryptocurrency has to break through the key resistance level of $4,200. On the flip side, there is also a possibility that Bitcoin struggles to breach the key resistance level and drops down to $3,000 level in the near future which will suggest a new key trend in the crypto market.
In February last month also, Kruger made a similar kind of projection about Bitcoin regarding its resistance level of $4,200. Since then, the coin has faced difficulty in breaching the level, and it continues to remain around $4,000. On the 24th of February last month, Bitcoin valued at $4,199 (close to breaking through $4,200) but then suddenly plunged to $3,800, triggering the sell-off for the next week after that.
Looking at a larger picture, the crypto industry has gained recognition with many institutional and organizations players adopting the digital currencies for carrying out their transactions. Even the crypto adoption among the retailers and merchants has seen a significant increase of late, further adding to the credibility of the industry. Many banking and financial institution have also taken the plunge with their own cryptocurrency which is seen as a positive step towards the adoption of digital currencies across the globe. Despite all these positives, there are still many critical challenges that the crypto industry has to overcome to boost the overall sentiments around it. Apart from the absence of a global regulatory framework, the various hacking incidents that prop up now and then affect the overall adoption sentiments related to cryptocurrency. The latest hacking instances related to Bithumb and DragonEx could seriously deteriorate the public perception and must be dealt with an iron hand to give a strong signal to all the fraudsters while reassuring investors about the safety of their investment. Although many areas of the crypto industry have now matured and got in place stringent measures, there are still some cryptocurrency exchanges which are vulnerable to the hackers. It may sound exaggerated to suggest that hacking incidents may affect the fortunes of the overall crypto industry, but their impact on denting the sentiments cannot be brushed aside. These are potential roadblocks in wider adoption of the crypto and must be taken seriously to find out a strong solution in this regard.