It’s another green day for crypto, and Digibyte (DGB) is among the big gainers. In the past 24-hours, Digibyte (DGB) has edged higher by over 20%, and is also supported by significant volumes. This means that the current upside momentum has a solid basis to it, and is not just a random spike.
However, such price moves are not a rare occurrence in crypto. Bull traps have rekkt investors all through the year. That’s why the big question now is, is this a bull trap, or the beginning of a bull market? While nothing is ever certain in financial markets, there are a number of factors that point to the possibilitythat this could be the beginning of a bull market.
The most noticeable of these factors is big-media sentiment, and the moves of pro-traders in the last few days. One interesting aspect to big media is that, every time they make a call on prices, the opposite usually happens. In late 2017, they were painting a bullish picture of crypto, and what followed was a catastrophic correction, that has seen some altcoins lose close to 95% of their valuations. A year later, Bitcoin is trading at a key support level, and they are painting a bearish picture. One of the trending news yesterday was that, Brian Kelly of CNBC, is possibly short bitcoin.
Interestingly, cryptocurrencies have been on a sustained uptrend since this news made the headlines, and if history is anything to go by, the market could have hit the bottom. It is also interesting to note that less than 24-hours ago, Mark Dow, a trader that short bitcoin at its peak tweeted that he was now closing his position.
While his follow up tweets indicate that he is still bearish on Bitcoin (BTC), the fact that he has decided to close his shorts is an indicator that downside risks are now higher than the potential returns. It is also noteworthy that all these occurrences are happening when Bitcoin seems to have found long-term support at the weekly 200-day moving average. This is a significant support level forBitcoin in all its bear cycles.
If indeed we have hit the bottom,and the market is on a rebound, holding Digibyte (DGB) makes a lot of sense. To validate this, we go back to a piece that Mark Dow penned in 2017, while makingthe case for shorting Bitcoin (BTC). In a part of his write up, he stated that,
“Even if cryptocurrencies settle down and eventually become an adoptable medium of exchange, it’ll likely be emerging tokens, not bitcoin that will win that race by being quicker, more efficient, and more practical.”
This statement seems to be a huge validation for practical cryptos like Digibyte (DGB). It may have taken a hit in the crypto bear, but Digibyte is one of the most efficient cryptos in the market. It is fast, secure, and highly scalable(on-chain). This makes it very practical as an everyday currency.
On top of that, Digibyte has a competitive edge in other areas such as cybersecurity. It is an all-rounded crypto that has real utility. Therefore, as sentiment improves, Digibyte (DGB) could emerge as a top performer.