Throughout the past 24 hours, the crypto market has slightly rebounded by around $3 billion, from $123 billion to $125 billion.
Bitcoin (BTC) has avoided a potential decline to the low region of $3,600, as it stabilized at around $3,850. It reached its daily low at $3,800 but rebounded by a small margin.
Other major cryptocurrencies apart from Bitcoin have recorded fairly large losses against the U.S. dollar throughout the past two days. Ethereum (ETH), Stellar (XLM), and Bitcoin Cash (BCH) demonstrated losses in the range of 1.5 to 8 percent on the day.
Since November 29, within seven days, the Bitcoin Cash price has dropped from $200 to $142, by more than 29 percent. While the asset did not experience a large single-day drop, it continued to lose its value against both Bitcoin and the U.S. dollar over the past week.
What is Happening to Bitcoin?
Subsequent to achieving a new yearly low at $3,456 on November 25, the Bitcoin price has struggled to show any sign of a major short-term reversal or a corrective rally.
A cryptocurrency technical analyst known as “The Crypto Dog” stated that a clearly defined range between $3,500 and $4,500 range has been established by the dominant cryptocurrency, and the probability of the asset maintaining that range has increased.
The analyst emphasized that currently, bears remain in control of the market, explaining:
“Following the November sell off into the low $3,000s, BTC has now carved out a clearly defined range between $3,500 and $4,500. A consolidation event following a strong move is more likely to result in a continuation than reversal. That means currently the bears are in control.”
Based on the oversold conditions of major cryptocurrency assets in the global market and the exhaustion the market has shown throughout November, the analyst added that the market could be going through the final stage of the bear market.
“It is my opinion that Bitcoin is in the final stages of this bear market. I expect the price to range between an absolute low of $2000 to an absolute high of $6,200 (more likely, $3000-5400) for a substantial period of time,” the analyst said cautiously, saying that a several-month-long accumulation period will likely follow the bottom.
Many companies in the cryptocurrency sector have started to downsize and adjust to market conditions. Even ConsenSys, the largest software development company in the blockchain sector, has announced its plans to realign its long-term strategy and vision to focus on delivering real products and results.
“ConsenSys 2.0 requires us to evaluate our endeavors more rigorously. We will seek to run leaner projects because often better decisions are made in a context of more constrained resources. Scarcity sharpens the senses and forces discernment in decision making. Lush plentitude, while perhaps a noble goal in many circumstances, should be hard won; otherwise it leads to complacency and dull-wittedness.”
If an increasing number of companies move beyond hype to focusing on the development of real products that can garner stable user bases, it could provide a strong foundation to support the next wave of crypto.
Featured Image from Shutterstock. Charts from TradingView.
Last modified: March 4, 2021 3:13 PM