Bitcoin price jumped to $74,000 on Wednesday as investors rotated to risky assets, raising hopes of a renewed crypto bull run. Ethereum moved above $2,200, while the market capitalization of all coins jumped by over 5% in the last 24 hours to over $2.46 trillion.
Pi Network, Dogecoin, and Bitcoin Prices are Rising
The top gainers in the crypto industry were tokens like Decred, SPX6900, Zcash, Dogecoin, and Pi Network, which all jumped by over 7% in the last 24 hours.
There were a few coins in the red, including popular names like NEAR Protocol, Morpho, River, and Memecore. A closer look shows that these tokens were among the best gainers earlier this year, meaning that investors are booking profits.
The stock market rose, with the Dow Jones, Nasdaq 100, and S&P 500 rising by over 0.50%. Top crypto stocks like Coinbase, Bitfarms, Strategy, and BitMine were all in the green, while the Crypto Fear and Greed Index jumped to 29.
These rebounds were triggered by a New York Times report that noted that Iran’s intelligence officials had reached out to the CIA for talks to end the war. This explains why crude oil prices and the US dollar retreated. Oil fell as the end of the war will reduce tensions in the Middle East and push Iran to reopen the Strait of Hormuz.
READ MORE: COIN Stock Prediction: Coinbase Forms Alarming Chart Patterns
Is This the Start of a Crypto Bull Run?
In a recent article, we predicted that launching a new war in Iran would be bullish for the crypto market. The argument at the time was that Bitcoin and most altcoins were crashing as investors waited for Trump to strike Iran. As such, the start of the war would be bullish as traders would focus on its ending.
However, there are potential reasons why the ongoing crypto market rally is not the start of a bull run yet. For example, Polymarket and Kalshi data show that the odds of a ceasefire happening this month continue dropping. That’s because the US, Iran, and Israel have all committed to continuing fighting.
Therefore, crypto prices will likely remain on edge as long as the war goes on. There is also a possibility that crude oil infrastructure will be damaged in the near term, leading to higher energy prices over time.
Additionally, all recent crypto rebounds turned out to be dead-cat bounces or bull traps. For example, Bitcoin and most coins jumped on Monday, only for it to erase gains the following day.
Technically, the chart above shows that Bitcoin has found resistance at that 50-day Exponential Moving Average (EMA). It also remains below the Supertrend and the Ichimoku cloud indicators. For a bull run to happen, the coin will need to move above these indicators as that will attract more dip buyers.
READ MORE: Ethereum Price Prediction for March: Will ETH Crash Further or Rebound?
