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While the last week before Christmas is approaching, the cryptocurrency market closes a well-needed & # 39;Santa Rally & # 39; for the envy of traditional markets, let's take a closer look at what happened with the best encrypted and if you are in sight of an end to the twelve-month bear market.
Christmas Santa Rally for Crypto
The total capitalization of cryptocurrency managed to find support around the $ 100 billion valuation level last week and rose sharply around 30% to $ 130 billion with a big bullish bullish candle and a noticeable increase in volume. A move of such great positivity has not been seen since the first week of April 2018 and certainly feels like a long time in the world of cryptocurrencies.
Moving in the early hours of Monday morning, the market did not let go and continued with another 10% to $ 143 billion. While this goes some way to signaling that buyers are returning to the market and that demand at these prices may outweigh the offer, there is a significant amount of work to do before we can say with conviction that this market – which suffered huge losses of $ 650bn (87%) – hit the bottom.
Christmas Eve earns across the board
Each of the best cryptocurrencies has seen significant gains, with XRP 00 being the biggest engine of 20%. Significant gains have been seen across the board, with six of the top ten coins earning double-digit gains and the tether falling while people have dropped the US dollar equivalent for rising cryptocurrencies.
Daily Bitcoin chart
After finding his legs just north of $ 3k, the market leader, Bitcoin, found resistance around the 23.6% retracement level at $ 4k. But it came out convincingly from one day to another and is now looking at $ 4.4k, which is where significant resistance was found earlier after a rebound after the initial $ 3ks average test.
This has a high probability of proving a significant level of resistance with a backtest of $ 4k, which must now pass from the previous resistance to support.
Because this market shows real bullish signs, however, the price of Bitcoin really needs to see a convincing attempt to break $ 4.5k on the first try. If BTC manages to consolidate around this level, the bulls will look north of $ 5.2k on the 61.8% retracement of the $ 6.5k fall where there will be significant profits and a short interest.
While Bitcoin and many other cryptographers have managed to provide relief to investors and savvy buyers, this market has a lot of work to do to become bullish.
The high probability is that Bitcoin will struggle to win back the $ 6k and will need to spend some time keeping and building a base above $ 3k. There is still a week left for some investors to crystallize their losses and recognize them on their tax returns, which can still have a negative effect on the market.
So while the much needed "Santa Claus rally" brought some Christmas cheer into the crypto markets, traders will look for signs of strength, with all the coins that need to find higher peaks and show resistance to each of the key Fibonacci levels to support with the first time to ask.
Does the price of Bitcoin suggest that it is now a buyers market? Where's the bottom? Let us know your thoughts in the comments below.
[Disclaimer: The views expressed in this article are the personal opinion of the author and do not reflect the views of Bitcoinist. The information in the article should not be taken as financial advice.]
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Images courtesy of Shutterstock, Tradingview.com
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