There seems to be a slight increase in the price of Bitcoin. It has increased from $3,451 to $3,526. The rise in price happened after the announcement of Fidelity to launch Bitcoin custody by the end of the first quarter.
The valuation of the crypto market has raised from $2 billion overnight as EOS, Ethereum (ETH) and Bitcoin (BTC) rebounded in the range of one to three percent when compared against the U.S. dollar.
Though the recovery of Bitcoin value prevented a further decrease in the price, traders still agree that the dominant cryptocurrency still is vulnerable.
Cryptocurrency technical analyst, DonAlt, said that if Bitcoin fails to remain over the $3,300 to $3,500 range, then it may face a sudden drop to the $2,000 region.
“Sitting in the last buy zone before new lows. Cut some of my buys due to the breach of the top of the zone. Looking to re-add them if it is reclaimed. If green fails $3,300, I expect a quick move into the $2,000s. If it holds $4,000 is on the cards,” the analyst said.
It is also believed that Bitcoin could avoid a drop below the $3,000 value level if it involves in recovery to $4,000. However considering the past performance and due to the lack of significant crypto assets momentum, it remains unlikely that Bitcoin initiates a strong corrective rally in the short-term without a significant catalyst. One of the cryptocurrency traders explained that the price trend of BTC is more towards the bearish trend as it has rejected a resistance level. He also added that if the BTC fails to maintain momentum in the level which it is currently at, the value could rapidly go below $3000. Mayne said “Was expecting more bullish PA at these levels, not looking great. Rejected from resistance and forming bearish MS on the H4. As I said earlier if we are going to bounce it will happen from these levels in my opinion, if we lose the swing low I think we drop fast.”
Previously, Mayne stressed that Bitcoin could potentially drop an additional 50 percent from the current level of $3,500 based on its performance over the upcoming few weeks.
Nasdaq could act as the catalyst that sets the future of Bitcoin in the market. The world’s fourth-largest asset manager Nasdaq is planning to launch its Bitcoin custody by the month of March. Many major catalysts on the horizon could fuel the revival of the market.
During the previous bear markets, crypto markets were quiet and slow. There was no presence of high profile product launches and investment vehicle that could potentially fuel the market to perform well.
For an investors perspective, the active involvement of large financial institutions in the global market could serve as reassurance for the long-term strength and performance of the cryptocurrency sector. After the 85 percent drop in the valuation of cryptocurrencies, the sentiments revolving around the cryptocurrencies are undoubtedly bearish.
As a Multicoin Capital general partner Vinny Lingham said, the crypto winter is at risk of transforming into nuclear winter if both companies and blockchain projects continue to struggle throughout the months to come. With investments coming from companies like Nasdaq and Fidelity, it could potentially prove the asset classes that the cryptocurrency sector is here to stay.
NYSE chairman Jeff Sprecher previously said “The unequivocal answer is yes crypto assets will survive. As an exchange operator, it’s not our objective to opine on prices” emphasizing that Bitcoin has survived many bear cycles in the past.
When considering the short-term, however, given the way the crypto markets behave, analysts believe the bearish sentiment and price movement to prolong throughout the first two quarters of 2019.
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