There is still a lot of tension in the cryptocurrency industry following BTC’s dive into a yearly low of $3210. On the 7th of December, BTC dropped significantly and this led the entire market on a decline that cost 16 billion within a 24 hour period. After falling this low, BTC started struggling to recover rising up to $3,455. However, the recovery wasn’t significant enough and the prices started correcting downward again this morning.
Traders Exercise Caution
Even if the price of Bitcoin was able to hold above the $3000 level, traders are still extremely cautious about the cryptocurrency and the entire industry. The short-term trend and high volatility BTC has displayed this past weeks have been discouraging to traders. In fact, short-term investors have been selling-off since the bears took over the market thus contributing to the decline.
Bitcoin (BTC) Price Today – BTC / USD
While the prices aren’t currently at their best, there are a lot of positive fundamentals surrounding the industry at this time. Big time financial establishments like Fidelity and Nasdaq recently made huge investments in the cryptocurrency industry. These kind of companies do not make such moves expect they believe in the long-term growth of the project. Morgan Creek recently placed a significant bet on the long-term progress of the industry to show that the company has faith that things will get better.
Amid all these strong fundamentals major coins continue to fall drastically against the USD. These coins aren’t just losing value: they are losing trading volume as well. This shows that assets are falling in price even without high selling pressure.
DonAlt, a technical cryptocurrency analyst said that HTC must breakout from the resistance at $3,700 if there is going to be any hope for a recovery. According to him, Staying in this level for too long will leave the asset permanently in the $3,000 to $3500 range. In his words:
“Today, the industry is recording a rather big bounce across the board. However, BTC remains below the significant resistance. If there is to be any bullish rally, the price must move above the resistance at $3,740.”
In the cryptocurrency industry, bearish pressure that affects major cryptocurrencies tend to have a direct impact on other cryptocurrencies as well. This is why a rise or fall in the price of BTC typically influences the price trend of the entire market. So, the market will most likely enter a long-term recovery if BTC manages to pull above the lowest resistance.
One catalyst that may influence the price of BTC next year is the SEC’s decision on VanEck Bitcoin ETF. The final decision is scheduled for February 2019 and it will go a long way to either boost or decrease the price of BTC. So, from the look of things, the bearish wave will most likely continue until next year. Even with all the upcoming developments in the market, the long-term recovery will not start until the bears lose momentum and give way for the bulls to enter the market. Traders must remain cautious until this happens.
Bitcoin BTC Price Now
At the time of writing, BTC was trading at $3,508.03. This shows that it was recovering higher against the USD by 2.41%. The trading volume over a 24 hour period is $5,026,610,535 and the market capitalization is $61,089,273,851.