The digital market has recovered, though insignificantly, by $5 billion. It has moved from $120 billion to $125 billion with the Bitcoin price treading above $3,700 over the past 24 hours. The unanticipated yet secured movement of Bitcoin could ensure short term recovery of other dominant digital assets and even minor market cap cryptocurrencies in the days to come.
It is customary for the crypto market to exhibit a decline in the volume and a reduction in trade transactions during weekends. The volume of Bitcoin though, in the past couple of days, has positioned itself above $5 billion with the everyday volume of the crypto market above $17 billion.
Dominant crypto assets have significantly increased in their volume thus paving the way for the market to make a comeback before Monday. It is that day of the week when the volume predominantly commences to make a takeoff and the market begins to witness an increase in trading activity.
Before the Bitcoin made a getaway and marched above $3,700 a well known technical analyst with an online name “Cred” stated that if the rates of Bitcoin moved ahead of $3,700 in a short period, it is highly probable that it would ensure a bullish trend and a lot of promise. He further stated and opened up that his plans were clear. He had set his targets to somewhere around $3,430 for selling. He continued that any movement of the Bitcoin price above $3,700 will make him a buyer and he would be in a buying mode until it reaches $3,840.
He said “Very compressed price action following the high set on Monday. My plan is straightforward: Price below & finding resistance at $3,560s I’ll look for sells targeting $3,430s. Breakout & price accepted above $3,700s I’ll be a buyer until $3,840s.”
With things moving in the right direction, a takeoff above the resistance levels of $4,000 mark may stop a further decline below the $3,500 range; else it may still be inadequate for the crypto leader to push the market towards a short term run.
Since December, Bitcoin has been trading in a narrow price range of $3,500 to $4,100. It has not been able to break above its resistance levels nor dropping below its support levels.
Overall, many key digital assets as well as insignificant market cap crypto assets have witnessed a gain of 2 percent to 4 percent against the US dollar. Following the positive movement of Bitcoin price in the past 12 hours, Ethereum rose by 3 percent, Cardano by 4 percent, and Litecoin rose by 5 percent.
On the one hand, though the bears still cloud the crypto market, on the other hand, major businesses such as Binance are showing a lot of interest in important markets like Europe.
After the commencement of Binance Jersey, which is a controlled fiat-to-crypto exchange that assists British pound and euro businesses, the CEO of Binance Changpeng Zhao on January 17 stated that “Binance.je is overwhelmed with registrations. There is a backlog of KYC verifications already. More resources are allocated to reduce it. In the mean time, we appreciate your understanding and patience. The registration prize is FIFO based, no worries. Just crazy! One thing we do “well” is underestimating ourselves, and the market.”
To halt a decline in the price of the crypto assets below a manageable range, it is crucial that the crypto market sustain high volumes regularly. Currently, though the overall markets are witnessing a comparatively increased market activity, maintaining the same would be important for the markets in the days come
