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In the last 12 hours, the price of Bitcoin has risen from $ 3,700 to $ 4,000 on major fiat-to-crypto exchanges such as Coinbase and Bitstamp.
On 3 December, Bitcoin (BTC) was about to plunge under a significant support level of $ 4,000 and at the time several analysts said that a fall below the support level could have brought the BTC to $ 3000.
The unexpected rapid recovery of BTC allowed the dominant cryptocurrency to avoid what could potentially be a large decline in the lower range from $ 3,300 to $ 3,600.
Where is the market directed?
Before the sharp recovery of Bitcoin at $ 4,000, technical analysts said the asset momentum was very weak at $ 3,800.
"I see no reason to be bullish on BTC at this level, not that it can not pump to test the resistance of $ 3,930 or higher, but the desire here is a game I'm not interested in," The Crypto Dog He said on Monday.
Hsaka, a cryptocurrency trader, echoed the general market sentiment e He said:
"Landfill, consolidation, landfill." One of the most frequent grain patterns, it usually has three legs, targeting the next blue level on a clean low swing pause. "
Technical indicators showed that a sharp decline in prices was at stake, but instead the price of the BTC experienced an unpredictable recovery.
While in the short term there could be a reversal of the trend, given the relatively low volume of Bitcoin to $ 5.3 billion and the generally negative sentiment in the market, a strong upward movement towards $ 5000 remains highly unlikely.
"It will be interesting to see where it will go, it could be a legitimate inversion.I remain net of the net until we start to break through $ 4000. Leaving my long hedge to stop, I have not set goals yet. (without stopping first me) I will ride it, "said the analyst.
Even though Bitcoin was able to recover from its minor fall on December 3, other major cryptocurrencies, including Bitcoin Cash (BCH), have struggled to maintain a kind of impulse in a low price range.
In the last 24 hours, BCH has declined by more than seven percent, rising from $ 200 to $ 154 in a seven-day interval of almost 30 percent.
General phase difficult for everyone
Initial coin offering projects (ICOs) are massively resizing with Steem extracting 70% of its workforce and even ConsenSys, the largest blockchain software company with over 1,000 employees, plans to reorganize the business in weeks to come.
Miners, with Bitcoin draw-even costs approaching $ 3,000, also have difficulty maintaining their mining operations at a loss.
Historically, a point where companies, miners and projects start to scale down and suffer financially was when the market reached a lower level and started a phase of accumulation. As companies start to struggle and the price of the major cryptocurrencies stabilizes in a low price range, the market may show signs of exhaustion and a minimum.
Shutterstock foreground image. TradingView Charts.
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