Bitcoin (BTC) May Have Surged, But Keep An Eye On $3,000
Crypto Trades Flat After Friday Pump
One day ago, crypto investors en-masse awoke to a surprising sight. Bitcoin (BTC) was trading above $3,700, posting an 8% daily performance, while altcoins, especially Litecoin (LTC) found themselves up by dozens of percentage. This move, catalyzed by an influx of buy-side pressure, pushed the cumulative value of all cryptocurrencies beyond $124 billion — from the $110 billion it was averaging in the days prior.
Yet, since the unexplained influx, markets have quieted down. Bitcoin market dominance moved a tad higher to 53.0% from the 52.6% seen at the peak of yesterday’s boom. Volumes have waned by 25% since Friday’s peak. And from the looks of it, crypto assets have begun to move slightly lower, save for LTC, EOS, and Binance Coin (BNB).
As of the time of writing, Bitcoin is trading at $3,650 apiece, down a mere 0.36% in the past 24 hours.
Analysts High On Hopium
While there has been no bull-side continuation of yesterday’s mini-recovery, analysts on Twitter have been somewhat optimistic. Per reports published yesterday, trader Benjamin Blunts remarked on Twitter that with Friday’s uptick, a downsloping technical pattern that he plotted had broke, indicating that further upside is more probable.
DonAlt made a comment in the vein of Benjamin’s optimism. The preeminent analyst noted that while Bitcoin and Ethereum are likely nearing the top of their short-term trading ranges, the “violence” that he has observed could indicate a move to $4,000 won’t be out of the realm of possibility.
From a longer-term point of view, Galaxy, a leading crypto bull and self-proclaimed “accumulation machine,” drew an optimistic “Adam and Eve” chart outlining the multi-month performance of BTC. It was depicted that BTC will slowly trend to its $3,150 yearly low, before breaking above $4,000 (which would confirm a recovery) and moving back above $5,000, $6,000 and beyond by year’s end.
Although a seeming majority seem bullish over the short-term, some analysts have remarked that it would be astute of investors to not get too optimistic. Speaking to MarketWatch, Naeem Aslam, chief market analyst at Think Markets UK, explained that Bitcoin’s sudden move past $3,700 hasn’t allowed the asset to break out of its range. Therefore, for now, he concluded that until $4,200 or $3,150 breaks, “there is nothing new [happening].”
Yet, Aslam did draw attention to the $3,000 level, remarking that if the Bitcoin price breaks below that pertinent level, a “bloodbath on the streets” would be triggered.
Aslam isn’t alone in the touting of the aforementioned price point. According to previous reports from Ethereum World News, Mati Greenspan of eToro took to CoinTelegraph’s most recent Youtube market update to touch on the significance of $3,000.
Greenspan, the in-house crypto researcher at the Tel Aviv-headquartered fintech startup, explained that BTC’s temporary inability to break $3,000 in mid-2017, coupled with the price point’s brief appearance as a line of support after the so-called “China FUD,” should solidify the level’s importance.
Title Image Courtesy of Jeremy Bishop Via Unsplash