Surges 18% in 3 Days as it Nears $3,800: What’s Next For the #Market
Since December 17, within less than three days, the Bitcoin price has surged from $3,181 to $3,776 against the U.S. dollar, by more than 18 percent.
like Coinbase and Bitstamp, Bitcoin (#BTC
) has slightly corrected to $3,700 but the breakout of the dominant cryptocurrency above the $3,700 mark has led analysts to consider the possibility of the asset testing major resistance levels in the $3,800 to $4,200 range.
Where is Bitcoin Heading to Next?
On Monday, when the Bitcoin price was hovering at around $3,500, a cryptocurrency trader with the online alias “The Crypto Dog” said that BTC could either drop below the $3,400 mark if it loses momentum or potentially rise to $3,800.
The analyst said:
consolidation below resistance. If we lose strength I look at $3,400 for support. Below there I am concerned. A break out and I’m eyeing $3,800.
Since then, #Bitcoin
has shown strong signs of breaking out of the $3,800 resistance level, which it has not been able to test since the first week of December.
Bitcoin likely experienced a substantial increase in price over the last week due to severely oversold conditions. From November 28, the value of BTC has continuously fallen against the USD, experiencing a steep sell-off without high sell pressure.
As the market started to show extremely oversold conditions, many major crypto assets started to initiate a corrective rally, eventually pushing the entire market to surge in valuation.
Traders that shorted Bitcoin from the top, at around $19,500, have also started to cash out their positions estimating the mid-term bottom of BTC to be in the $3,000 to $4,000 range.
Speaking to Bloomberg, Mark Dow, a trader who called the top of BTC, said: “I’m done. I don’t want to try to ride this thing to zero. I don’t want to try to squeeze more out of the lemon. I don’t want to think about it. It seemed like the right time. They just saw it was going up and wanted a piece of it.” #bitcoinnews #bitcoininfo