Bitcoin (BTC) hit the most recent bottom of $6,423 yesterday on Bitstamp, sending the whole crypto market in full bearish mode again.
Since bitcoin year’s high of $14,000 back in June, the market has corrected highlighting a consistent downtrend.
It’s typical of bitcoin to correct about 80% after its high, this should take us all the way down to around $2,800 but analysts insist that’s a remote possibility now and that $6,400 might actually be the bottom for now.
Since the fall yesterday, the top cryptocurrency and the whole market have seen a steady recovery with the price of bitcoin jumping back to the $7,200 level in a matter of hours. In fact, in the range of 9 hours to be precise the price went all the way from $6,400 to $7,400 in all major exchanges with the excitement of the crypto community that went as far as calling that the definite bottom.
When the cryptocurrency runs so fast back up, it’s normally a sign that the price will keep rising. This time though there is much more caution from both bears and bulls.
In order for the market to be in full recovery, the price needs to hit back the crucial resistance level of $7,800.
Popular traders Tone Vays and Ugly Old Goat discussed the scenario during one of Vays’ YouTube episodes yesterday and both agreed that we won’t be back to a bull market until that resistance level is broken.
In the last few hours, bitcoin price has been consolidating between 7,100 and 7,200 against the dollar, at the time of writing it’s sitting on $7,125.
All scenarios are still currently possible. Next resistance levels are $7,400, $7,600 and $7,800 which was strong support for a while, that’s why it’s considered to be so critical.
Support ranges are $7,000, $6,800, $6,600 and $6,400. The most likely situation appears to be a consolidation sideways between $6,800 and $7,400 until the beginning of January when CME debuts with Bitcoin options and this might mark a new turmoil in the space.
As usual, all major coins in the crypto market followed the bitcoin trend.
Ether (ETH) fell to a new low of $115 on Kraken and it’s slowly recovered trading at $127 at the time of writing.
XRP has continued the downtrend that it showed during the whole year hitting 2019’s bottom of $0.17 on Kraken. It has not recovered much since yesterday when it hit the bottom and it’s currently trading at $0.187.
NEO, the Chinese version of Ethereum, has offered one of the best recoveries from yesterday’s bottom of $7.70 up to $8.93 of today, gaining a good 16% over the dollar. It’s currently trading at $8.65.