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In the last 48 hours, the price of Bitcoin has stabilized around $ 3,400 after falling to a new annual low of $ 3,210 on December 7th.
On a weekly basis, Bitcoin (BTC) rose 6% from $ 3,210 to $ 3,400 but the cryptocurrency market lost $ 14 billion of its valuation against the US dollar, mainly due to the overwhelming performance of key digital assets and the collapse of the value of ERC20 tokens.
Even the price of Ethereum has slightly recovered from a level similar to that of Bitcoin, with Ethereum (ETH) which recorded an increase of 8% from $ 83 to $ 90. But the price in Bitcoin Cash remains at historic lows at $ 94.
Big Bitcoin Buy Wall
According to Su Zhu, CEO of Three Arrows Capital, buying walls on fiat-to-crypto platforms such as Coinbase and Bitstamp for Bitcoin at $ 3,300 have increased significantly in recent weeks.
The increase in wall buy on the main digital asset trading platforms suggests that a small group of investors are starting to accumulate Bitcoin while remaining highly volatile in a narrow but low price range.
Zhu has explained:
"10% less from here ($ 3,300), buy walls on @Coinbase are now the biggest (BTC) since mid-2015. Similar to Bitstamp."
He also pointed out that to break below the $ 3,300 level, more investors on the Know Your Customer (KYC) stock exchanges, which are essentially fiat-to-crypto trading platforms, will have to cross the big buy wall at $ 3,300 and conduct a intense sell-off.
"To break down you will need to fill these bids supported by the fiat O 1) plus BTC borrow to get in line 2) Off-ramp sale KYC-able.The sale of derivative instruments will lead to a very negative financing , as it was, "he said.
If a strong unforeseen sell-off should occur, the daily volume of Bitcoin, which is around $ 4 billion, is expected to exceed its monthly high at just over $ 6.5 billion.
Over the past seven days, the volume of the dominant cryptocurrency has continued to decline while the price of the asset has stabilized in the range of $ 3,300 to $ 3,500. The decline in the volume of BTCs shows mainly that the selling pressure on the currency decreased after its fall to a new annual minimum.
As a cryptocurrency trader and a technical analyst with an online alias, "Hsaka" said, as long as BTC does not clash with a major resistance, it will likely remain in the range of $ 3,300 to $ 3,500. There are several resistances north of $ 3,000, about $ 3,500 and $ 3,700.
L & # 39; analyst He said:
"Quite slow to grind from the grain, coming to the resistance range now – a net break and a closing of the resistance of $ 3,480, and I'm looking back towards the gray supply." Invalidation in the event of returning below $ 3,400. "
Is it a short-term rally for Bitcoin at stake?
Currently, based on market performance from the beginning of December, Bitcoin is more likely to extend its negative sentiment to 2019. Until the currency begins to show signs of prolonged stability and start of a period of consolidation, volatility in a context of low price range is expected.
Shutterstock foreground image. TradingView Charts.
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