Within under 30 minutes Bitcoin’s price surged upward 7% rising it from $3,625 to $3,900. All other major crypto assets followed suit with Bitcoin surging upwards dramatically including Ethereum rocketing up 19%, BCH 17% and XRP up 10%.
The crypto market has been suffering greatly over this holiday season and though this surge was unexpected and welcomed, it has only recovered the market to yesterdays valuation. The crypto market has always been victim to wild volatility and this short term rally is not different and holds little long term prospect, but the rally has instilled some confidence back into the market.
Will this Momentum Continue into 2019?
For weeks now we have been waiting to see Bitcoin break through some of its major resistance levels including the $5,000 and $6,000 areas but have yet to see any progress. With it’s recent tumble in value, we have yet again seen Bitcoin test its lower resistance levels solidifying its current bottom. If we do not see Bitcoin break through its upper resistance levels, it’s likely that the price with once again devalue.
The current Bitcoin buy wall is located near $3,300 and is what allowed Bitcoin to stay above its yearly lows.
This unfortunate sudden volatility has no positive potential for the market and indicates a drop coming in the near future. The crypto market volume is down $5 billion from mid December leading it to stay near $15 billion.
It is expected that their will be a short term rally in the future in the $4,500 to $5,000 region followed by a dramatic plunge to a new yearly low in the $2,000 region.