We might finally be seeing a Cryptocurrency comeback! Just as the US stocks erased almost all of Monday’s losses, the major cryptocurrencies including Bitcoin, Ethereum, Ripple, and Litecoin started a comeback.
This was after the US Senate cryptocurrency hearing struck a cautiously optimistic tone on Tuesday. Most cryptocurrencies had already reached their respective key support levels.
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Fundamentals of Recent Cryptocurrency Comeback
The SEC Chairman Jay Clayton and the Commodity Futures Trading Commission Chairman Christopher Giancarlo took a “do no harm” approach to the cryptocurrency market. However, they will be monitoring activity in the ICO market closely.
Bitcoin picked up around 8% while lesser known altcoins such as NEO and NEM rose over 21%.
Almost all cryptocurrencies in top 100 are in the green territory at the time of filming.
The market participants took cues from US regulators who appear to see the transformative potential within blockchain technology and cryptocurrency.
This comes after major US credit card issuers announced they’ll be declining crypto purchases over the weekend, which added fuel to last week’s bearish market sentiment.
On the less optimistic note, they also see a need for closer monitoring. This could temporarily slow down the cryptocurrency comeback.
Cryptocurrencies Mostly Bullish After Reaching Support
Most cryptocurrencies turned bullish on Tuesday and continued the sentiment during Wednesday’s early trading hours. While Bitcoin’s rally slowed down a bit, others such as NEM’s XEM continued up.
XEM/USD was supported at 0.3854. However, it remains below the daily Ichimoku cloud. The future cloud appears bearish.
This time around, the cryptocurrency comeback might not be as rapid as the December rallies. More investors are becoming cautious of the volatility, and there is a good chance they’ll take it nice and slow.
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xoxo
Kiana
