Following the strong Christmas corrective rally in today’s crypto news, we can see that the crypto market has lost about $18 billion in a two-day period.
The price of Bitcoin declined below the $3,800 mark after the corrective price surge to $4,300 but also Bitcoin Cash suffered a drop to $170 over a period of seven days losing 26 percent of its value against the US dollar.
Over the past seven days, crypto investors on the market have a positive stance on the short-term trend of Bitcoin and other digital assets since the number one cryptocurrency has a shot at a strong recovery to mid $4,000 region.
Many crypto analysts suggest that the crypto market is still in a bear position and that though this could be the last cycle of a year-long downtrend, there is still a chance of a high level of volatility in the lower price range.
Prior to the rally that led the crypto market to add $40 billion, the crypto trader Crypto Dog said that a rally above $5,000 resistance level is unlikely in the short-term.
‘’Bitcoin found support near historical highs at $3,000. Earlier this week, I watched Bitcoin’s volatility and sell volume stall the further its price fell, leading me to wonder if the fabled ‘$3,000 support’ would be front ran. It was. If bulls are able to push past $4500, $4800 is the last bump in resistance that stands in the way before $5,400. At this time I am not anticipating a rally beyond $5,500, nor can I guarantee more relief even past $4,500, though we must not count any scenario out.’’
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