The Bitcoin price spiked from $3830 to $4030 by around 5 percent the sudden increase in the price of BTC led to the other major crypto assets to spike in value. Ripple, Bitcoin Cash, Litecoin, EOS and Stellar recorded gains in the range of 3 to 12 percent on the day, demonstrating solid momentum over the last 24 hours.
With a $7 billion increase in the combined value of cryptocurrencies, the market has initiated a decent short term price movement. But, as the ccryptocurrency trader with an online alias said, the valuation of cryptocurrencies would have to break out of the major resistance levels in the range of $160 billion to $180 billion to call for a convincing short term rally.
For three months, the market has hovered between $100 and $140 billion. As seen in the yearly chart below, short term volatility in a low range doesn’t present a proper accumulation period. Many traders anticipate an increase in market capitalization to $180 billion as a potential catalyst for a mid-term rally. Even a recovery to $200 to $250 billion range could still leave the market vulnerable to a future additional drop in value. There exists several catalysts in the likes of the schedules launch of Bakkt, the US SEC’s decision on the VanEck BTC exchange traded fund (ETF) filing, and the development of Nasdaq’s BTC futures market that may contribute to a potential rally of cryptocurrencies in the 1st quarter of 2019.
However, the probability of the three events materializing within the next two months is slim. Bakkt is already delayed the launch of its futures market. Hester, a pro-crypto commissioner, said the investors should not wait on the approval of the ETF as it could be days or years.
The Estonia based exchange is making headlines as it gears up for its imminent launch on January 7th. Also on day one, the platform plans to offer tokenized stocks backed by real shares of 10 of the biggest companies on the Nasdaq: Apple, Amazon, Facebook, Tesla etc. The digital stocks will be based on the actual shares held by MPS MarketPlace Securities and holders will be entitled to the same cash dividends. Traders will be able to buy and sell the digital stocks 24 hours a day, 7 days a week, sidestepping the traditional open and closed nature of the stock market. The platform will give foreign investors a new way to enter the US market. The exchange will launch will zero trading fees and says 500,000 people have pre-registered to start trading when it goes live.
Summary: Challenges Ahead for crypto!
The market need more than a short-term rebound. While positive it doesn’t have to alter the ongoing trend. Cryptocurrency needs to reach its November levels. That’s $230 billion in valuation and around $6000 for Bitcoin. Until then, it’s a unique challenge to declare a trend reversal or an end to the bear market.
For further information: