The crypto market was on the brink of dropping below the $100 billion mark on December 15th. This was the first time since August 1, 2017. The market’s valuation has seen an increase of 4 billion. However, traders and cryptocurrency analysts are still wary regarding the short-term trend of the asset class.
Hard Times for Crypto Market
Major cryptocurrencies and small market cap tokens displayed extreme volatility in low price range. More importantly, there were no signs of a trend reversal which leaves several investors wary of crypto market. As Bitcoin price dropped to $3,122 on Saturday, a large number of traders began accumulating the asset.
Hsaka, a cryptocurrency technical analyst, said that no trend reversal can be confirmed until it breaks out of several resistance levels below $4,000.
“The numbers next to the line are the spread b/w the open and close for that day. There is nothing bullish about this chart until BTC reclaims $3,300. Your obsession to knife catch a ‘bottom’ is directly proportional to your account erosion,”
Digital asset trader DonAlt resonated with Hsaka’s sentiments and said that ETH bears will likely look for a place to enter a short position in the $80 to $90 range.
The trader said:
“If ETH makes it out of that horizontal and diagonal resistance combination, I’ll be turning into a dip buyer. For big ETH bears, this is the place to look for shorts. If this resistance fails I think we’ll go quite far. I’ll just observe and see how it does.”
Till the time digital assets undergo a consolidation period of several months at a similar rate it is an extremely risky proposition to call a bottom and begin accumulating.
The daily volume of Bitcoin has nearly halved from $6.5 billion, within a three-week span. The decline suggests that most digital assets are falling in price without significant sell-pressure from bears and sellers.
Another Bloodbath in Future ?
Outside the crypto arena, investors struggle to deal with traditional finance sector due to volatility of the U.S. and Chinese stock markets. In the wake of falling crypto market it’s likely that traditional sector will heave a sigh of relief as investors enter the crypto market.
