Since December 17, within four days, the Bitcoin price recovered from $3,181 to $4,073 by 28 percent on most major fiat-to-crypto exchanges.
But, on a 30-day basis, the value of the dominant cryptocurrency still remains down about nine percent from $4,400 and still has to surpass resistance levels above the $4,400 mark to confirm a bullish movement on the upside.
According to a cryptocurrency trader with the online alias “The Crypto Dog”, it is too early to confirm a mid-term trend reversal and eye an entrance into the $5,000 region.
While Bitcoin experienced a strong corrective rally supported by a spike in daily volume, the trader said that several confirmations have to be made in order to confirm a proper rally beyond $5,500.
Bitcoin found support near historical highs at $3,000. Earlier this week, I watched Bitcoin’s volatility and sell volume stall the further its price fell, leading me to wonder if the fabled ‘$3,000 support’ would be front ran. It was. If bulls are able to push past $4500, $4800 is the last bump in resistance that stands in the way before $5,400. At this time I am not anticipating a rally beyond $5,500, nor can I guarantee more relief even past $4,500, though we must not count any scenario out.
Currently, as of December 21, the volume of BTC hovers at around $8.7 billion, up nearly 100 percent from $4.3 billion since the first week of December.
The increase in the volume of the asset amidst a promising corrective rally suggests that buy walls in the tight range of $3,000 to $3,500 were strong enough to trigger an upward movement once the market started to demonstrate extremely oversold conditions.
The analyst added that Bitcoin is approaching the final stage of the bear market, with the only lacking element being several months of a consolidation period during which the asset demonstrates stability and low level of volatility.
In the foreseeable future, many analysts generally see Bitcoin maintaing momentum in a wide range between $3,000 and $6,000, expecting wild volatility until the market stabilizes in the long-term.
Major crypto assets that reflected the price trend of Bitcoin in a more intensified way over the past three weeks have begun to increase substantially in value.
Following a 40 percent increase in price on December 19, on Friday, Bitcoin Cash recorded yet another 42 percent surge, rising to $220. This week, the Bitcoin Cash price surged from around $80 to $220, increasing by 175 percent against the U.S. dollar.
Ethereum recorded a rally in a similar magnitude as Bitcoin, recovering beyond the $110 mark for the first time since late November.
In the weeks to come, some positive developments around the proposal of U.S. lawmakers to exclude cryptocurrencies from securities regulations may relieve pressure on Ethereum and other smart contract protocols.
Last modified: June 14, 2020 9:35 AM UTC