Up until now, the bounce backs in the cryptocurrency market have been sold into. None of the bounce back has been able to sustain. Currently, Bitcoin (BTC) has bounced from $ 3200 to around $ 4000. It has been partially sold into as well. Bitcoin (BTC) is currently trading around $ 3800. The question which remains is whether there is any scope of the cryptocurrency markets attaining older heights.
Can the cryptocurrency market regain older heights?
The truth is that at the peak most of the cryptocurrency prices were inflated beyond fundamentals. There was no rationale for the cryptocurrency prices to be at those levels. Many of these cryptocurrencies had surged multifold. They have corrected more than 90%. Thus, in order to for them to reach newer highs, they have to grow by more than 9 times. This is certainly not possible for each and every cryptocurrency.
The truth is that the cryptocurrencies which are experiencing a surge in the usage of their blockchain like Tron (TRX) might be able to rise and make new highs. The ray of hope looks pretty slim for the other cryptocurrencies which do not have actual blockchain usage. In such a case, the investors who are stuck at the higher levels might never be able to see their capital recover. That is why; it is actually pretty difficult for the broader cryptocurrency markets to retain older heights.
The cryptocurrencies which have stronger fundamentals will not only be able to reach their older heights but also surpass them. It is now more important than ever for investors to look at the fundamentals rather than buying the cryptocurrencies market wide.