Market Defends $100 Billion Mark Yet Traders Remain Cautious

The crypto market was nearly at risk of dropping below $100 billion in value on December 15. This was the first time since Aug 1 last year that such a scare had occurred. However, since that time onwards the crypto market has recovered slightly as its total value increased from $100 billion to $104 billion. Despite this recent recovery traders have chosen to remain cautious toward short-term future of cryptocurrency.

Bitcoin (BTC) Price Today – BTC / USD

NamePrice24H %
bitcoin
Bitcoin(BTC)
$17,874.04
-5.20%

Difficult Times for Cryptocurrencies

Since early December this year, the majority of the top cryptocurrencies, as well as small market capitalization tokens, have shown extreme volatility consistently. This demonstrates that there may be no signs of a reversal soon.

As the price of the top digital asset Bitcoin (BTC) dropped to $3,122 on Saturday which is a new low, a high number of investors quickly moved in to call a bottom and start accumulating the token. Bitcoin’s price movement is in not positive in any way. Hence, it is hard to confirm a trend reversal until it breaks out of the resistance levels below $4,000.

Crypto analysts believe that there’s no bullish signal about the price chart for BTC until the token reclaims the $3,300 support area. DonAlt, a daily digital asset trader, is one of the experts to echo this sentiment regarding Bitcoin (BTC) and Ethereum (ETH). The crisis has pushed Ethereum to number three just behind Ripple (XRP) among the most valuable cryptocurrencies in the global market. According to him, the bears will look for space to enter a brief position at $80 to $90.

Is a Bloodbath Set to Hit the Market?

Apart from the crypto space, investors in the regular financial sector are struggling to handle the instability within the global financial market because of the volatility of the United States stock market and that of China. For several months at least, it has become highly unlikely that new wave of investors or traders will enter the crypto scene from the traditional financial market giving the digital asset market breathing room.

Top Assets Must Undergo Corrections for the Market to Move Forward

One sentiment that is echoed by nearly every trader in the space is that until the major digital assets undergo corrections or achieve a consolidation period that spans through several months at a rate similar to what was attained as at August to October this year (during this period Bitcoin showed the least level of volatility in recent months or even years), it will be a risky proposition to call a bottom.

The overall outlook is that the majority of the traders and technical analysts stay cautious regarding Bitcoin and Ethereum’s short-term trend. The same principle applies to other crypto assets.

All in all the overall daily volume of Bitcoin (BTC) has almost halved from $6.5 billion, in a three-week period. This decline in volume for Bitcoin (BTC) in a highly volatile period suggests that most virtual assets have been falling in price with no significant sell-pressure. The volume of BTC has to recover. The crypto market has to start portraying a level of resistance in the near range at $3,000 to $3,500 before we can actually call a bottom.

Princess Ogono is a writer, lawyer and fitness enthusiast. She believes cryptocurrencies are the future. When she's not writing, she spends time with her adorable cat, Ginger and works out often.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.