This morning the crypto market is painted red once again, divulging downwards towards an impending bottom. Where the bottom lies remains is still unclear, though now many analysts believe this bear market will remain with us into the new year.
Two weeks ago hopes were still high that the first quarter of 2019 would bring about a rise in the crypto market, but recent events have only contributed further negative sentiment around Bitcoin’s valuation. Bitcoin continues to struggle to break through the $3,700 barrier, but remains comfortably above $3,200 at it’s current valuation of $3,425 at time of writing.
The cryptocurrency market has lost $14 billion this week even though Bitcoin has recovered from its yearly low on the 7th of $3,210. Bitcoin Cash reached a new all time low of $94 this week and currently remains hovering barely above at $97. Ethereum has also slight recovered from its low of $83 back to $90 at this time.
Where are we going?
As described in yesterday’s market report, Bitcoin’s price is currently in a pinball like state bouncing back and forth between $3,200 and $3,600. Bitcoin’s price will continue to do this until it breaks out of a major resistance level, which could be north or south. Many analysts believe that Bitcoin will eventually break out of the $3,700 level and establish a new resistance level.
The volatility surrounding Bitcoin will eventually decrease and Bitcoin will enter a consolidation period with increased stability. Sell pressure has currently reached a new yearly low, increasing the likelihood of an impending major sell off when a resistance level is broken.