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In just a few minutes, on 6 January, the price of Bitcoin rose from $ 3,830 to $ 4,030 by about five percent. The sudden increase in the price of Bitcoin has led to an increase in the value of other important cryptographic activities.
Ripple, Bitcoin Cash, Litecoin, EOS and Stellar recorded gains of between 3% and 12% during the day, showing solid dynamics in the last 24 hours.
Cryptographic market trend still uncertain
With an increase of $ 7 billion in the combined value of cryptocurrencies, the market has started a fairly short-term price movement.
But as a cryptocurrency trader with an online alias "The Crypto Dog," cryptocurrency valuation should outstrip higher levels of resistance between $ 160 billion and $ 180 billion to demand a convincing short-term rally.
"Another day, another bright little move, is this the best? I'm looking for $ 180 billion if we can turn $ 140 billion into support, otherwise there's not much to be excited about," he said the trader.
For three months, the market settled between $ 100 and $ 140 billion. As seen in the following table, short-term volatility in a low price range does not have an adequate accumulation period.
Many traders expect an increase in market capitalization to $ 180 billion as a potential catalyst for a medium-term rally. Even a recovery of $ 200 – $ 250 billion could still leave the market vulnerable to further decline in future value.
There are several catalysts such as the planned launch of Bakkt, the decision of the US Securities and Exchange Commission (SEC) on the deposit of the VanEck Bitcoin exchange fund (ETF) and the development of the Nasdaq Bitcoin futures market that could contribute to a potential cryptocurrency rally. in the first quarter of 2019.
However, the probability that the three events materialize in the next two months is minimal. Bakkt has already delayed the launch of its futures market. Hester Peirce, a pro-crypt commissioner, said investors should not wait for ETF approval because it could be days or years.
Incoming challenges
The market needs more than a short-term rebound. Although positive, it does not alter the current trend.
Cryptocurrency must reach November levels. They are $ 230 billion valuation and about $ 6,000 for Bitcoins. Until then, it is a challenge to declare a trend reversal or the end of the bear market.
For the foreseeable future, various cryptocurrencies, including Ethereum, which should undergo major protocol changes, may continue to see an increase in their value.
The hard rope of Ethereum Constantinople lies at the horizon. It has risen about 80 percent in value in the last three weeks.
Shutterstock foreground image.
