The price of Bitcoin (BTC) has increased by more than eight percent in the past 24 hours, as the dominant cryptocurrency recovered to $4,000.
On fiat-to-crypto exchanges like Coinbase and Bitstamp, Bitcoin is yet to surpass $4,000 mark but on crypto-to-crypto trading platforms, the price of BTC hovers at around $4,100.
Fueled by the corrective rally of BTC, major cryptocurrencies in the likes of Ripple (XRP) and Ethereum (ETH) recorded gains in the range of six to nine percent, with Ethereum rebounding to $115.
The cryptocurrency market has added $11 billion to its valuation and tokens such as VeChain (VET), 0x (ZRX), and Zilliqa (ZIL) have recorded gains of around 15 to 20 percent.
On November 27, prior to the eight percent increase in the price of BTC, Crypto Rand, a prominent cryptocurrency trader, stated that depending on the daily close of Bitcoin, the asset could experience a short-term trend reversal.
“Keeping an eye on the daily close of Bitcoin. Looking to print a bullish hammer that could lead the reversal,” the analyst said at the time.
Since then, the price of Bitcoin along with its volume have increased substantially, bringing up the daily volume of the rest of the market from around $12 billion to $18 billion.
As Bitcoin ended the day with a positive short-term movement and a corrective rally, the analyst added:
“Bitcoin daily bullish hammer in play. First reversal signal on weeks.”
On Tuesday, Don Alt, a cryptocurrency technical analyst, echoed a similar sentiment, stating that BTC is in a prime position to engage in a short-term positive movement.
“Constant bouncing on a strong demand zone. If it fails I expect a very violent move down. If it holds we’ll most likely stair step up. I’m scalping the small TF’s based on this. Should breakout soon otherwise the bulls are in trouble.”
Currently, Bitcoin faces a major resistance level in the range of $4,100 to $4,200. A breakout of the $4,150 mark could signal a full trend reversal for BTC after weeks of a downward movement. But, based on the time frame and the past performance of the asset in the last two weeks, a sudden breakout of large resistance levels remains a challenge for BTC.
The majority of small market cap tokens in the market demonstrated fairly large gains against the U.S. dollar as the price of BTC demonstrated some momentum.
But, tokens are down on average 30 to 50 percent against BTC and during a period in which the U.S. Securities and Exchange Commission (SEC) is accelerating its investigation into dozens of initial coin offering (ICO) projects that are generally considered to be securities, tokens present an extremely high-risk, low-reward opportunity.
Several tokens, including Zilliqa, that are anticipating the completion of major network upgrades and improvements in the upcoming weeks have increased in value against most large-scale cryptocurrencies.
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Last modified: June 14, 2020 9:34 AM UTC