[ad_1]
Bitcoin (BTC) has grown over eight percent in the last 24 hours as it exceeds $ 3,800 for the first time in nearly two weeks. The total market capitalization has also added over $ 20 billion in just over a couple of days while virtual currencies register significant price increases.
It has Bitcoin Bottomed Out
Once again, the question that Bitcoin has found its low price is at the center and center of conversation in the cryptocurrency sector. From the crash in mid-November and below $ 6,000, $ 5,000 e $ 4,000 prices, analysts continue to predict different funds between $ 1,000 and $ 3,000. Some even say that BTC is destined to go to zero.
On December 15, 2018, the first-class cryptocurrency dropped to $ 3200 and looked set to test $ 3,000 for the first time since mid-2017. However, less than a week from that point, BTC seems to be pushing for over $ 4,000. .
As far as the question of a possible lower price is concerned, a critical point comes to mind. Before the famous bull run in 2017, the price of $ 3,000 has shown a tenacious resistance level for bulls. More attempts to cross $ 3,000 have been rejected. It was not until mid-August 2017 before the upward trend could sustain a boost above that level.
Santa Claus Rally Imminent
The crux is now to see if this current rally can push above the psychological levels following $ 4000 and $ 4,200. It is very likely that price hikes can be rejected at one of these levels leading to lateral trading.
According to Mati Greenspan of eToro, the current rally is a "short coverage rally". There have been hopes of a positive price movement towards the end of the year – "a manifestation of Santa Claus".
The recent crypt rally can only be explained as a short coverage rally.
People are trying to reduce their exposure and close high-risk sales positions before the holidays.
Closing a short selling position creates upward pressure on prices.
Try: BCH is the maximum. pic.twitter.com/g9kbrxWSaO
– Mati Greenspan (@MatiGreenspan) December 19, 2018
The developing narrative to explain the current trend is that BTC is in the oversold region. Commenting on this development, Mike McGlone of Bloomberg, He said:
The market is extremely unsold by most of the metrics, close to the most oversold in the history of Bitcoin.
BCH driving Altcoin Rally
The current upward price movement is not limited to Bitcoin alone. Through the market, even the altcoins are in the green. Bitcoin Cash drives the gainers in the top ten, with an increase of over 35 percent in the last 24 hours.
The market itself is even more than $ 20 billion but it is still somehow out of its total valuation of about $ 200 billion before the fall of mid-November. Ethereum, the third-class cryptocurrency has returned above $ 100, gaining more than 11 percent by the current day of trading.
Image courtesy of Shutterstock, Coinmarketcap.com and Twitter (@MatiGreenspan).
[ad_2]
Source link
