Ever since the cryptocurrency market started declining last year, the price of Bitcoin hasn’t been able to recover fully to its all-time-high. This has caused a lot of anxiety in the market with investors wondering if things will ever change. Each time there is a spike in the price of BTC and other cryptocurrencies, the community takes a deep breath of relief. This happened yesterday when the price of BTC jumped from $4,030 to $3,830. This was a five percent spike that also pulled other cryptocurrencies up.
Bitcoin Gains Along With ETH XRP, BCH, LTC EOS And XLM
In the cryptocurrency industry, changes in the price of BTC typically lead to changes in the price of other cryptocurrencies. This is because BTC is the most dominant asset in the market with more than 51% of the market share. So, as BTC gained 5%, altcoins gained between 3% to 12%. Even if these gains got the community excited, there is still uncertainty about the cryptocurrency price trend.
Bitcoin (BTC) Price Today – BTC / USD
As the market experienced a $7 billion increase in value, it initiated a short-term price movement. However, no major resistances were broken. One member of the cryptocurrency community called ‘The Crypto Dog’ said: the cryptocurrency market valuation must break a strong resistance above the $160 to $180 billion range if it is to become bullish short-term. In his words:“Another week, another lackluster move. Could this be the top? I am looking for a move above $180 billion. It should hold the $140 billion level as support if not there will be nothing to be excited about.”
For more than three months, the total market capitalization of cryptocurrencies has been unable to move out of the $100 to $140 billion range. As long as the price range remains low, the short-term volatility will not be enough for accumulation. Analysts believe that a rise above the resistance at $180 will certainly ignite a mid-term bullish rally. However, things are so unstable that a recovery above $200 and $250 billion isn’t a guarantee that the market will not suffer future drop in value.
Possible Catalysts To Ignite A Bullish Rally
Even if there is a serious downtrend in the market, there are still some upcoming projects that may serve as catalysts for a rally. First off, the Bakkt is making plans to launch its platform for institutional players soon. Don’t forget that the SEC is finally going to make a decision about VanEck’s Bitcoin ETF. Nasdaq is also developing its BTC Futures market that is set to support a price spike. All these events are scheduled to happen in the first quarter of 2019.
Keep in mind that Bakkt and the SEC may not meet up with the scheduled timeline. Already, Bakkt has shifted the launch more than once. Also, Hester Peirce, a pro-crypto US commissioner encouraged the cryptocurrency community not to wait for the approval of Bitcoin ETF. He urged members of the community not to hold their breath as the decision could be made within days or years.
What Lies Ahead
If there is to be any significant rally in the cryptocurrency market, then something stronger than the January 6th recovery will be required. Short-term minor boosts aren’t strong enough to alter the ongoing trend. A rise above the November levels that will take BTC back to $6000 or higher is the only thing that can confirm a long-term correction and mark the end of the bear market.
Short-term, an asset like Ethereum, that is going to experience major network changes, will most likely experience a rise in value. The upcoming Constantinople hard fork is already causing a spike in the price of Ethereum. Within the past three weeks, Ethereum has increased by 80%.