On the 8th of February, Bitcoin (BTC) and almost all the digital currencies in the crypto market saw a sharp price reversal. The entire digital currency market saw a strong $10 billion recovery. The valuation of the digital currency market surged to $121 billion from $111 billion in less than twenty-four hours, breaking out of a one-month stagnation.
With an overnight massive price surge, the digital currency market almost recovered to its levels in early January around $130 billion. Many other top digital currencies such as EOS (EOS) and Litecoin (LTC) amassed double-digit gains in the range of 15 to 20 percent against USD.
The strong, sharp price correction saw the value of the most dominant digital currency in the world surge by about 11 percent. Bitcoin (BTC), which was trading at $3,338 soared to $3,726. The digital currency later plunged to the $3,616 mark. However, it has surged higher again and it is now trading within the $3,680 and $3,750 range over the past day.
Are There Still More Bullish Movements for Bitcoin (BTC) and Wider Crypto-Market?
Bitcoin (BTC) has not properly established a bottom yet. The digital currency is still vulnerable to a short-term price plunge below the $3k support level.
In an interview with MarketWatch, Naeem Aslam – the chief market analyst of Think Markets UK – said: “Over the past couple of weeks, we have not seen any major movement in the value of Bitcoin (BTC). We are stuck in a price range of $3,183, Dec. 17 low, to $4,234, December 24 high. As long as we are not breaking out of this range, there is nothing new.”
Since the beginning of this month, a lot of analysts have been emphasizing that Bitcoin (BTC) has to recover to the $4k to $5k level in order to confirm a breakout over the key hurdle point. If the digital currency continues to trade within the $3,500 and $4k level, the probability of Bitcoin starting a rally back to its peak at $20k is very low.
Considering the uncertainty around the near-term performance of the digital currency and if it could break into the mid-$4k area, traders expect Bitcoin (BTC) to show a sideways action.
Bitcoin (BTC) Price Today – BTC / USD
A digital currency technical analyst – Mayne wrote: “Maybe the low has set in and it is an upward trend from here to all-time high. Maybe we form a range and go sideways. If you are worried about missing the next bull run because of today, chill. The goal is to catch the majority of the move, few will buy at or close to the low and hold to all-time high.”
Traders have suddenly become more optimistic in the near-term future of Bitcoin and the entire digital currencies in the market because of the strong resilience shown by top digital currencies over the past two days.
This Week’s Best Performing Assets
This week, EOS (EOS) and Litecoin (LTC) were the best performers in the digital currency space. The two blockchain platforms have seen enormous progress in the adoption of decentralized apps (Dapps) and technology development. According to a recent report, Litecoin is in the middle of fully integrating confidential transactions and MimbleWimble, two solutions that will enhance the scalability and privacy of the blockchain network.