In the last 48 hours, the price of the world’s top digital asset by market cap Bitcoin (BTC) has stabilized at $3,400 after going downwards to $3,210 on Dec. 7. Bitcoin (BTC) has been up by 6% from $3,210 to $3, 400 but the crypto market as a whole has lost a whopping $14 billion in value due to the underwhelming performances of the major digital assets as well as the drop in the overall value of ERC-20 tokens.
Apart from Bitcoin (BTC), another top token Ethereum (ETH), has managed to initiate a slight recovery. The digital token recorded an 8% increase in value from $89 to $90. However, the price of Bitcoin Cash (BCH) went to record an all-time low at $94 as of press time.
String Bitcoin (BTC) Buying
According to the CEO of Three Arrows Capital, Su Zhu, the buy walls on fiat-to-crypto and crypto exchanges such as Bitstamp and Coinbase for Bitcoin (BTC) at $3,300 have significantly risen in recent weeks. The rise in buy walls among the top digital assets indicates that a small section of investors are beginning to accumulate Bitcoin (BTC) while it is still highly volatile in a tight low price range.
Bitcoin (BTC) Price Today – BTC / USD
According to Zhu:
“10% down from here at $3,300 the buy walls on Coinbase have become the largest since mid-2015. This is the same situation with Bitstamp.”
The Three Arrows Capital CEO went on to say that, a break below $3,300 (with more investors on the Know Your Customer enabled exchanges, which are fiat-to-crypto trading exchanges) will mean the investors need to get over the buy wall of $3,300 to lead a major sell-off. In his words:
“Breaking lower will mean filling the fiat-backed bids.”
- Putting out more BTC borrow online
- KYC-enabled exchanges activate off-ramp selling.
Derivatives selling will only result in funding becoming negative as the case has been this year”. He added.
In the event that a large unanticipated sell-off happens, Bitcoin’s daily volume which typically hovers around $4 billion, would actually spike above the monthly high of the digital asset by a little over $6.5 billion.
In the last seven days, the dominant digital asset’s volume has continued its fall in price in what has been an uneven year for cryptos. The price of BTC has now stabilized between the ranges of $3,300 and $3,500. The decline in Bitcoin (BTC) overall volume mainly shows that the cryptocurrency’s selling pressure has dropped by a minor percentage after its drop to record a new yearly low.
Until the top digital asset BTC breaks from the major resistance area, it is likely going to stay between the ranges of $3,300 and $3,500. Note that there are several resistance levels existing in the north of $3,000, at $3,500 and finally $3,700.
Should We Expect a Short-Term Rally For BTC?
Currently, looking at the movement of the market essentials since early December, it appears more likely that Bitcoin (BTC) will extend its downward trend into 2019. Many believe that until the cryptocurrency starts to demonstrate prolonged stability as well as the initiation of a period of consolidation, volatility in the low price range should be expected.