In last few hours the price of Bitcoin surged up from $3,625 to $3,934 (currently) following other cryptocurrencies like Ethereum (ETH) has shown a great performance today and have shown a green signal in a market.
The Bitcoin has covered the unforeseen of the short-term trend of crypto assets led traders to regain confidence in the market and the market recovery has started according to analyst.
The increase of Bitcoin price was unfortunate, as there will be no impact on the short- term of the dominant cryptocurrency but in a rally of uncertainty and doubt and declining confidence of investors.
Will Bitcoin and Ethereum Sustain Momentum in Market Soon or Not?
Many analyst have said throughout that the price of Bitcoin will break out the major resistance level in the $5,000 to $6,000 but initially the price has fortunately paused at $3,900 and rally go upto $4,500.
Trader, Mark Dow who has shorted price of Bitcoin from $19,500 all the way down to $3,500 and as far as it seems that the inability of the asset to recover beyond $6,000 could result in a further drop of BTC below $3,120, its yearly low.
The investor said on December 13:
10% down from here ($3,300), buy walls on @Coinbase are now the largest (in BTC notional ) since mid-2015. Similar for Bitstamp. To break lower will require filling these fiat-backed bids. Either 1) more BTC borrow to come online 2) KYC-able off-ramp selling. Derivatives selling will just lead to funding becoming very negative as it has been.
To prevent Bitcoin falling yearly low once again, to set up a strong support level in the low range of the $3,000 region.
Where Ethereum has surged up by 17% from $119 to $137 currently and showing a great performance right now.
Currently, the cryptocurrency market volatility is low and it will take time to recover until unless the Bitcoin may not surge up till $5,000 as the volume of the crypto market hovering around $15 billion, down $5 billion from mid-December.