Since December 15, inside a ten-day range, the digital currency showcase 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.
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 example, is as of now esteemed at around $4,200 on fiat-to-cryptocurrency trades. While the benefit has broken out of a few opposition levels above $4,000, a breakout of $5,000 is vital to affirm a legitimate bullish value development, as expert Willy Woo clarified recently.
One might say that the crypto showcase has accomplished a base, as Ethereum co-maker Joseph Lubin underscored, however it is too soon to reason that the bear market of cryptocurrencies has reached 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.
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.