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In the last 24 hours, the cryptocurrency market has seen its depreciation fall from $ 135 billion to $ 130 billion, as the price of Bitcoin has fallen below $ 3,800.
On 2 January, the dominant cryptocurrency registered a breakout above the resistance level of $ 4,000, but struggled to increase further from $ 3.912, returning to $ 3.780.
Year bored for Bitcoin in 2019
Historically, Bitcoin tends to take an average of 62 weeks to recover from a major correction or a bear market, and all five asset corrections tested over the past nine years have been included in the interval between the 85 and the 90 percent in terms of long time loss.
Bitcoin reached its all-time high at $ 19.665 on December 16th and since then, the price of the asset has continued to fall sharply against the US dollar. In December 2018, Bitcoin dropped to $ 3,210, recording a decline of 83% from its all-time high.
Bitcoin's historical performance does not provide clarity on the future performance of cryptocurrency. However, it can be used as a reference to predict the time span of the recovery of the activity.
Willy Woo, a cryptocurrency analyst and creator of Woobull.com, said in November that key Bitcoin indicators show a potential rebound in activity in the second quarter of 2019.
"By putting together the blockchain view, I suspect that the timing of a bottom can be around Q2 2019. After that we start the real accumulation band, only afterwards, we start a long lap towards the top," Woo said in the moment when the price of Bitcoin was $ 7,000.
Considering that Bitcoin needed just over 15 months in the last four corrections to recover, if the business were to recover within the second quarter of this year, it would be similar to the recovery of previous corrections.
According to a cryptocurrency trader known as "The Crypto Dog", the price of Bitcoin could show stability and a low level of volatility for all of this year, presenting a boring year for traders.
The dealer said:
BTC has mostly touched the bottom (it might even have put the final minimum), but we will not see a significant rally or new highs for a while, so there's not much to be excited about. Greetings to a boring 2019.
Bitcoin finished?
Most analysts agree that Bitcoin is about to reach its lowest level. Some predict that $ 3,210 may have been the lowest point for the resource, but some traders have argued that at the moment there are no solid indicators to show that the business has definitively established an adequate fund.
It is difficult to declare the fund of the asset because of its wild volatility in a low price range. While the Ethereum and Ripple (XRP) cryptographic assets have made big gains in the last month, with Ethereum picking up 80%, the market still shows some weaknesses.
As seen in the $ 5 billion decline in cryptocurrencies over the course of the day, as long as the market goes through a consolidation period of several months, investors should expect high volatility.
Shutterstock foreground image. Price charts from TradingView.
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