Bitcoin is ALIVE!Dec 19, 2018
On Tuesday, the BTC continued to grow significantly, after a long decline the day before. The price of the largest cryptocurrency regarding capitalization has reached the level of $3894 on Bitfinex. The growth over the past few days amounted to about 20%, at minimums of $3220 and today’s’ maximum of $3894. In addition, BTC capitalization has increased to $ 65.7 billion.
Following the BTC, all cryptocurrencies with the capitalization of more than $1 billion returned to the “green zone”. Moreover, the list of billionaires has widened – the TRON (TRX) once again joined this list. The best result over the last 7 days was shown by EOS and Lightcoin (LTC), which rose in price by 37.5% and 24.5%, respectively.
Due to the rapid growth of the EOS price, it returned to the 4th position regarding capitalization, having shifted Stellar.
The current increase of BTC and number of other cryptocurrencies are also associated with sales in the US stock market. We highlight that the largest US stock indices are traded at the minimums of the current year. Capital flight from such a large market can provide a significant opportunity to cryptocurrency, taking into account the significant oversold in this market. However, until the moment of the resistance breakthrough at the level of $4000, this trend should not be considered as stable.
Most experts point to the rapid increase in trading volumes on the largest cryptocurrency exchanges. The increase of hype could really prop up the market, especially considering its decline before.
Worth noting that most traders and investors expected a global reversal from the psychological level of $3000.
Media published this information, and therefore, the price approaching this level attracted the attention of buyers.
However, the Blockchain Transparency Institute (BTI) experts affirm that most of the transactions are fictitious, and they were faked by simultaneously placing the same orders. We should more focus on this because according to the information in the previously published BTI reports, there was a grave exaggeration of the volume on even huge exchanges. In some cases, no more than 1% of the declared volume was confirmed.
All this distorts the real picture of supply and demand, as well as real hype in the market. Buyers experience strong technical and psychological resistance levels of $4000. Until the breakdown of this resistance level, further growth cannot be expected.
Moreover, the price should return under the level of $3550 to activate sellers and, as a result, cancel the bullish scenario for BTC.
Up to this point, the future direction of the price movement is indeterminable. However, according to traditional technical analysis, the growth of BTC, ETH, XRP, and some other largest cryptocurrencies seem as the correction after which the next wave of sales can occur.