It appears that the tide is starting to turn in favor of cryptocurrencies these last few days. According to reports, beginning from December 15 to December 25 (ten days), the Bitcoin (BTC) price shifted beyond the $4,200 mark, and the wider digital currency market added a whopping $45 billion to its valuation.
Bitcoin (BTC) Price Today – BTC / USD
This development has made a number of crypto analysts express a positive stance on the short-term price of the top digital asset Bitcoin and others. They remain confident that the top dog digital token has actually established a bottom.
What is the Prospect for Bitcoin?
Most of this year and currently, Bitcoin (BTC) and the majority of cryptocurrencies in the space are undoubtedly still feeling the effects of the bear market with BTC in particular. The digital asset is still down by 79% despite the recent turnaround. Other major digital assets including Ethereum (ETH) and XRP (XRP) are still down by 89% each from their all-time highs. For crypto investors to believe beyond any doubts that cryptocurrencies are not in a bear market anymore, digital assets have to increase by 20 to 30% at least.
For example, Bitcoin (BTC) is valued at $4,200 on exchanges, and it has moved past a number of resistance levels beyond the $4,000 mark. Hence, a break above $5,000 is essential for investors to call a proper bullish price shift. This is the only way to truly confirm that the bad days are over and Bitcoin (BTC), as well as the wider market, are away from bearish market sentiment.
BTC Has Demonstrated Months of Consolidation and Accumulation Throughout 2019
At $3,120, Bitcoin (BTC) saw its lowest point in 2018. This price position could have actually been its bottom, including an 84% drop from its all-time high one year ago. However, for a full trend reversal pattern to be confirmed, the digital asset will have to show strength particularly during the first quarter of next year, demonstrating many months of accumulation and consolidation.
According to Ethereum (ETH) co-founder Joseph Lubin, even though it is too early to come to the conclusion that the bear market sentiment of cryptocurrencies has passed, it is near safe to say that the digital asset market has recorded a bottom. The strong rally of the collective in the space has offered to relieve to the crypto ecosystem which has, in turn, increased the possibility of a trend reversal price action through the Christmas season.
Wider Crypto Market is Up By 45%
The crypto community can smile now because, since mid-December, the market has recorded a surge in valuation from nearly $100 billion to about $145 billion, which approximately a 45% increase. However, when you consider previous highs in wider crypto market valuation, the cryptocurrency market hasn’t reached the November levels from last year when it was valued at $220 billion.
The digital token market will need to rebound by at least 51% to recover to the $220 billion high attained a year ago. With a number of positive industry-related projects in the works including the long-awaited launch of Bakkt Bitcoin futures by January next year, investors are anticipating a favorable price movement through the first two months of next year.