For the first time in a couple days the majority of the market is reporting in the green. Bitcoin is up 2.9%, XRP 1.4%, ETH 2.9%, XLM 1.2% and USDT has recovered to a stable $1 value. The sudden market recovery that’s boosted Bitcoin up to $4,000 was completely unexpected.
Multiple market analysts and indicators predicted that Bitcoin was set to dip down once again following the recent pattern. One crypto trader by the name of Hsaka stated the following. “Dump, consolidation, dump. One of the most frequently occurring patterns on the corn, generally has three legs to it. Targeting the next blue level on a clean break of the swing low.”
The surprise of the sudden market recovery may have helped Bitcoin avoid dropping back down into the low $3,000’s but it still may be to soon to tell. While many would hope that this $4,000 resistance level signals a new bottom, it’s unclear what the future holds as its becoming nearly impossible to accurately predict the market.
“Will be interesting to see where this goes, it could be a legitimate reversal. I remain net short until we start breaking through $4,000. Leaving my long hedge at break even stop, no set targets yet. If we start pumping to 5k (without stopping me out first) I’ll ride it out,” says the Crypto Dog, a crypto Twitter personality.
Where is the bottom?
After weeks of agonizing market drops and unpredictable pump and dump schemes, the market is beginning to grow weary. Two weeks ago we published an article addressing the large number of crypto mining schemes shutting down in China, and the number of ‘closed’ signs has only increased since then. At this time it’s estimated that the breakeven cost for mining is $3,000, and Bitcoin continues to flirt very close to this number.
Steem announced last week that due to the market drop they have had to ‘let go’ over 70% of their employees to stay in operation. Consensys also recently announced that they are going to have to ‘clean up’ their business model of over 1,000 employees.
When we look at similar market bottoms in the past, we find that around the time when companies begin to dissolve or cut back, miners shut down, and the prices of major cryptos stabilize, we find ourselves at a new market bottom. With Steem, Consensys and multiple major mining farms shutting down, the market may soon find stability.