Crypto Market Added $45 Billion in 10 Days, is Bitcoin Close to a Bottom?

[cybersofts]

Since December 15, within a ten-day span, the cryptocurrency market added $45 billion to its valuation as Bitcoin surpassed $4,200.





Many analysts are generally positive on the short-term price trend of Bitcoin heading towards the year’s end, confident that the dominant cryptocurrency has established a bottom.


Prospect of Bitcoin
Currently, Bitcoin and the vast majority of cryptocurrencies are undoubtedly in a bear market. From its all-time high, the Bitcoin price is still down 79 percent and other major crypto assets such as Ethereum (ETH) and Ripple (XRP) are down around 89 percent from their all-time highs.

On December 23, as the Ethereum price surged by more than 51 percent against the U.S. dollar, Alex Kruger, an economist and a cryptocurrency trader, said:

    7 days ago ETH was down 94% from all time highs. Now, after a 52% increase in 7 days, ETH is only down 91% from all time highs.

For investors to reasonably believe that cryptocurrencies are no longer in a bear market, digital assets would have to increase by over 20 to 30 percent against the USD.

Bitcoin, for instance, is currently valued at around $4,200 on fiat-to-cryptocurrency exchanges. While the asset has broken out of several resistance levels above $4,000, a breakout of $5,000 is important to confirm a proper bullish price movement, as analyst Willy Woo explained earlier this month.

“Be aware the above scenario is contingent on a bounce upwards to test low $5,000s. Currently, the short term price action is consolidating into a wedge with hidden accumulation (according to the OBV indicator), this suggest there is more probability of an up move from here,” Woo explained when the price of Bitcoin hovered at around $3,500.

$3,120, the lowest point Bitcoin reached in 2018, could have been its bottom, capped at an 84 percent decline from its all-time high. However, to confirm a full trend reversal, the asset would have to show strength throughout the first quarter of 2019, demonstrating several months of consolidation and accumulation.

It could be said that the crypto market has achieved a bottom, as Ethereum co-creator Joseph Lubin emphasized, but it is too early to conclude that the bear market of cryptocurrencies has come to an end.

Still, the strong corrective rally of major digital assets has relieved significant pressure from the cryptocurrency market, increasing the probability of a potential trend reversal and positive price movements over the Christmas season.

45 Percent Up
Since mid-December, the cryptocurrency market has recorded an increase in valuation from $100 billion to $145 billion, by 45 percent.

However, in a grand scheme of things, the cryptocurrency market has not even reached November levels, when the valuation of the market was hovering at $220 billion. The market would need to rebound by 51 percent to recover to $220 billion.

With several positive industry-related developments including the launch of the Bakkt Bitcoin futures market in January, investors in the market are anticipating a solid price movement throughout the first two months of 2019.


Reference: https://www.ccn.com/crypto-market-added-45-billion-in-10-days-is-bitcoin-close-to-a-bottom/

[Herbert2020]

whenever i look at bitcoin charts the term "undervalued" comes to my mind. in other words i don't believe bitcoin is close to a bottom, but it has crossed the bottom and is now below it, value-wise. otherwise considering the price and how low can it go, there is no possible way of knowing that because we are in uncharted waters without any logical reason for being here other than manipulation.

[Tytanowy Janusz]

We just break major support and drop almost instantly to 3k. Its very cummon to retest support from bottom, thats why traders are pushing price pushing price up these days. As long as we will loose momentum bitcoin will show its true direction (moon or hell). Where moon might be around 10k and hell around 1k.

Thats why I do agree that bitcoin was underwalued at 3k price but its not now while its loosing momentum much below support retest.

[semobo]

Simply who knows?

Nobody knows that crypto currencies prices and its movement for now the prices are getting increased so which may bring a thought thay the bottom was reached but it may falls at anytime so there is no real bottom we can measure for bitcoin.

[adaseb]

The reason why it rose so much and so fast is due to all the shorts covering their positions. You need to keep in mind that there was tons of money made shorting BTC when it broke $6000. And I imagine many people shorted when the $5500 didn't hold either and same with the $4000 not holding.

Hence  the reason why when BTC goes up, it usually goes up by spiking because people's stop-loss, margin call, take-profit, trailing stops are executed and when it dumps, its usually not as severe (except today).

I still think there is more upside but the $6000 is going to be a really tough hurdle to close above, since there are many trapped traders in that area.

[talkbitcoin]

The reason why it rose so much and so fast is due to all the shorts covering their positions. You need to keep in mind that there was tons of money made shorting BTC when it broke $6000. And I imagine many people shorted when the $5500 didn't hold either and same with the $4000 not holding.

Hence  the reason why when BTC goes up, it usually goes up by spiking because people's stop-loss, margin call, take-profit, trailing stops are executed and when it dumps, its usually not as severe (except today).

I still think there is more upside but the $6000 is going to be a really tough hurdle to close above, since there are many trapped traders in that area.

or in addition it can simply be because a large number of investors are still waiting around with their money ready to be invested in bitcoin and they are desperately waiting for any kind of signal that can assure them about the end of whale dumps so that they can make their entrance without having to worry about more whale manipulation of the price!

[buwaytress]

Aaaand Christmas is here, shedding all of those gains people were squirreling about for the past week. Just had to tempt fate with all the headlines of "close to a bottom" and "gained back everything it lose in December".

Just goes to show you can't keep a good coin down yes, but also you can't call anything. Gotta hand it to all those 10% profit takers, nice Christmas bonus.

[davinchi]

It is a great news that it added 45 billion dollars in 10 days but looking at the market we are having another red day so it is still too early to call it a win just yet. Obviously, considering market was under 100 billion dollars just two weeks ago having a 120+ billion market is a great news and maybe even means that we have hit bottom already and from now on it will be just green fields all day for a long time and 2019 could even bring us back the one trillion market cap (at this point I am fine with 500 billion to be honest) but in order for us to say stuff like that we should really just look at the prices a little longer, if on average the price keeps going up another month or so that means we are officially in a bull era, without going any further up, just 4200 wouldn't mean anything all by itself.