Crypto Market Breadth Widens, Signals Bullish Momentum
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Bitcoin (BTC), the leading cryptocurrency by market capitalization, has risen nearly 27% this month, its highest one-month gain since January.
According to ByteTree's market volume indicator, which compares the number of rising digital assets versus the number of falling coins, BTC is followed by many alternative cryptocurrencies.
The score, based on CryptoCompare, tracks real-time data from over 5,300 digital currencies and categorizes tokens by their trends on a scale of 1 to 5. A score of 5 means the coin is in a sustained upward trend, while a score of "0" means the presence of a pronounced downward trend.
At the time of publication, only 4.7% of tokens are in an active downtrend, which is the lowest level since January. This indicates that the breadth of the market is expanding and more coins are participating in the increase in the value of Bitcoin.
Rising market volume reflects increased investor interest in risky investments and suggests that the bullish momentum is more stable and sustainable.
"The crypto portfolio is improving so much that there are practically few downtrends left. Uptrends (blue) are on the rise, and you are never sure if this might be the right trend. The halving is only six months away, and the Fed will soon have to do it again print funds,” said Charlie Morris, founder and chairman of ByteTree, in his research report. 
In the chart above, the dark blue and light blue areas show coins in sustained upward trends and in the early stages of a bull market. The yellow area represents coins in a state of consolidation, and the red area shows coins in a pronounced downtrend.
The number of coins in the rising trend phase increases, as evidenced by the increase in the number of coins in the dark blue and light blue zones. The situation is in stark contrast to a year ago, when rising stocks were rare.
At the time of publication of the article, the price of Bitcoin exceeded $34,400, while the total capitalization of the crypto market reached $1.32 trillion.
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