[ad_1]
On 7 December, the price of Bitcoin reached a new annual minimum, as the cryptography market's valuation declined by $ 16 billion within a 24-hour period.
The price struggles in Bitcoin to recover from the new annual minimum
Bitcoin (BTC) fell to a low of $ 3,210 on fiat-to-cryptocurrency exchanges such as Bitstamp and Coinbase, which resulted in other major cryptocurrencies and digital assets with low market capitalization to fall 15-20% compared to the US dollar .
Since then, the price of Bitcoin has rebounded from $ 3,210 to $ 3,455, more than seven percent in just 12 hours.
However, traders are cautious about the short term price trend of the dominant cryptocurrency, given the intensity of the recent fall and the volatility that the market has shown over the past two weeks.
Factors and trends
Positive developments continue to surround the cryptocurrency market when large financial institutions such as Nasdaq and Fidelity make big bets on emerging infrastructure providers such as ErisX, a strictly regulated cryptocurrency exchange in the US market.
However, the prices of the major cryptocurrencies are falling at a rapid pace, in most cases with low volumes, suggesting that many businesses are in freefall without a high sales pressure.
As the technical analyst DonAlt said, Bitcoin still remains below an important resistance level at $ 3,700, and the inability to get out of it could lead the assets to remain in a low price range between $ 3,000 and $ 3,500.
The analyst explained:
"A decent day with a big enough rebound across the board, but BTC is still below the resistance, so if BTC wants to become bullish on longer time frames, I would really like to see it get back to the bottom of the chart ($ 3.740 ). "
In a bear market, in particular in crypts, the prices of the main cryptocurrencies tend to fall by wide margins, not influenced by developments in the sector. For example, several reports have claimed at the beginning of this week that the delay in the Securities and Exchange Commission (SEC) of the US Securities and Exchange Commission (SEC) on the Bitcoin Exchange Fund (ETF) caused a substantial drop in the price of BTC.
However, the delay of ETF VanEck in February was expected by many investors in the traditional financial market because the SEC has no reason to do its utmost to approve an ETF in advance before the final maturity.
Even if a Bitcoin ETF were to be approved or rejected, the event would probably have a minimal impact on the current state of the market, because the market is so overwhelmed.
In order for Bitcoin to recover, the market must start showing fatigue and extreme fatigue due to strong sales. Historically, in 2010, 2012 and 2015, the BTC fell about 85%, underwent a consolidation and accumulation phase of several months, before committing to a correct recovery.
2019
The downward market in the cryptocurrency market is likely to extend until 2019 and, regardless of major developments involving the VanEck Bitcoin decision on February's ETF and the planned launch of the Bakkt futures market in January, the market will start to to recover only when bears and sellers lose momentum and control in the market.
Shutterstock foreground image. TradingView Charts.
Get an exclusive cryptographic analysis by professional traders and investors on Hacked.com. Register now and receive the first month for free. Click here.
