Bitcoin price briefly surpassed the $4,000 price point which showed clear signs of a new rally but in our today’s bitcoin news we can see that the price dropped to $3,884 at the time of writing.
The decline in the price of Bitcoin also led to other digital assets dropping such as Ripple and Ethereum dropping even further than the number one cryptocurrency. Ethereum, for example, declined from $154 to $141 which is nearly a 9 percent decline against the US dollar.
Experts believe that the volatility in the range between $3,000 and $5,000 will not have a huge impact on the mid-term price of Bitcoin. In order for the cryptocurrency to show a trend reversal, the market has to recover as well at least by 70 percent.
In short-term, the BTC price will possibly show a much higher level of volatility in the $3,000 to $4,000 range and it could drop below the $3,500 price point. Crypto trader DonAlt says that the asset will likely shoot out of the major resistance level at $4,000 over a 24-hour price movement.
He pointed out:
‘’Short hedged around 70% of my entire portfolio around $3,900, now going to enjoy new years in peace. I’ll be looking to rebuy the next support down below ($3,400) or stop out once we close above $3,950.’’
The entire market is expected to see some extension of the volatility in the first week of 2019 given the fact that the daily volume of the crypto market and Bitcoin will stay relatively high at $15 billion and $5 billion.
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