On Monday, Bitcoin surged past $22,000, reaching its highest level in almost a month. Other cryptocurrencies also had a rebound, with ether rising more than 7% from its price 24 hours earlier and Polygon’s MATIC token rising by 15%.
However, with the price of Bitcoin recovering $22,000, many crypto traders are now wondering whether the leading digital currency has now struck a bottom or is merely seeing a brief rally.
Popular cryptocurrency investor Lark Davis cautions that despite the recent crypto rally, we are still in a bear market in a tweet on Monday.
“Just remember, macro conditions have not changed dramatically. This is still a bear market until proven otherwise, Be Careful…” Davis tweeted as he warned the crypto investors.
Davis is not the only one!
It is important to note that Davis is not the only market analyst urging traders to exercise prudence. For instance, seasoned market analyst Peter Brandt cautioned in a tweet on Sunday that the most recent Ethereum price pump lacks the volume to sustain it, despite a user commenting that it is only a short squeeze.
“The (ETH) upturn came on extremely light volume. I.E. the thrust was not based on aggressive buying from strong hands and is, therefore, questionable.”
Currently, Bitcoin is trading at $22,136, up 3% in the last 24 hours and 8% across the previous week.
Since November 2021, the cryptocurrency markets have experienced a challenging eight months. Notably, it has experienced pressure from fears about rising inflation as well as internal structural failures brought on by things like the Terra collapse. As a result, the value of several cryptocurrencies has fallen by approximately 90% from their peak.
After reaching an all-time high of $69,000 in November 2021, the price of bitcoin has been falling. The current decline had brought the price to a historic low of $17,592 in June 2022. Since then, the price has generally been rising.