The cryptocurrency market seems to be recovering – but did Bitcoin hit bottom? Maybe not!
In the last hours, beautiful lights have shone in the realm of Bitcoin and cryptocurrency, with a rise in prices on the blackboard. In addition, Bitcoin – which has been in the $ 3000 high for the last few weeks – has reached $ 4000 level. Bitcoin is currently trading at $ 3940, as reported by CoinGecko.
A careful market, however, has welcomed this news with a mixture of relief and alertness. I am glad that the price has returned, but I also fear that this is a temporary and edifying news. We could go back to the bottom again.
A Dead Cat Bounce?
Could this be just a case of financial specialists and retailers who harden their generally calmer Christmas time situations? Maybe a couple of people expect a lot of business to be done over the next week, and this way, probably some sort of security will have originated from this.
Some contend however this is the beginning of a complete recovery. That the bears have had their time and that the buyers' market is coming back. Regardless of whether it is by conviction or expectation, it remains to be seen, yet there is an inclination among the numerous that the current price of Bitcoin is below what its reasonable market value should be.
An expression that keeps coming, however, is the rebound of the dead cat. It is the adage that even a dead cat will bounce a little if it has been dropped from a tremendous height. What is happening is that we see a brief recovery, yet the general hypothesis is terminal.
This is unequivocally the most skeptical reading of the present circumstance (and the way in which each crypt has been in the green the previous day or two proposes in general), but then have been really cynical opportunities in these two previous weeks. There are still breaks in the wider cryptocurrency market and a precious little guarantee – all when national assemblies are engrossing with crypts and blockchains like never before.
The expectation, in any case, is that the following couple of weeks will remain quiet. Or on the other side, maybe those prices will continue to hit upwards. The real test for the market, however, will take place once in January. At that point, we will have a superior idea of where we are as a whole.