Big Crypto Recovery as EOS Surges 35%: Can Bitcoin Recover to $4,000?
December 18 2018 - 12:07PM
ADVFN Crypto NewsWire
Over the last 24 hours, the crypto market demonstrated one of
the strongest single-day rallies since November, as Bitcoin (BTC) rebounded by more than 11 percent from
$3,181 to $3,541.
EOS, which was the sixth most valuable cryptocurrency last week
ranked behind Tether (USDT) and Stellar (XLM) overtook Stellar with a staggering 35
percent price surge from $1.94 to $2.62.
Since achieving its daily peak at $2.62, the EOS
price has fallen from $2.62 to $2.42, closing the day’s gain at
around 25 percent.
What Triggered Bitcoin Rally?
As the Bitcoin price surged by 11 percent,
most major cryptocurrencies and ERC20 tokens experienced large
gains in the range of 10 to 40 percent.
Some analysts have speculated that the squeeze of short
contracts on margin trading platforms led most cryptocurrencies
including Bitcoin that demonstrated extremely oversold conditions
to endure a corrective rally.
The 11 percent price surge of Bitcoin reversed the short-term
trend of the market, breaking out of the trend of free falling
without significant sell pressure and volume.
While Bitcoin could potentially rebound to $4,000 to $5,000 in
the weeks to come, a cryptocurrency trader with an online alias
“The Crypto Dog” emphasized that the macro trend still remains
bearish.
The trader added that the current trend reversal will likely not
lead to an all-time high and that most rallies could fail in the
short-term. The trader said:
“If this turns mega bullish and we start to reach $5,000 to
$6,000: do not forget that we are in a macro bear market. It’s not
going to just go up and break out and go on to new ATHs. Rallies
will fail, prepare for it.”
Still, for the short-term trend of the market, the corrective
rally of Bitcoin was highly beneficial. With the momentum set by
the dominant cryptocurrency, Ripple (XRP), Cardano (ADA), and many
other smaller cryptocurrencies have shown large gains against the
U.S. dollar.
Future of the Market
Many cryptocurrencies have recovered in the last 24 hours but on
a monthly or a quarterly basis, most digital assets are down quite
substantially against both Bitcoin and the U.S. dollar.
To confirm a proper mid-term trend reversal and a rally, the
cryptocurrency market will still have to maintain its momentum for
several months. From August to October, for nearly three months,
the cryptocurrency market demonstrated its highest level of
stability but one sell-off reversed the trend, initiating a big
bear market.
The timing of the corrective rally, however, during a period in
which reports have started to claim the cryptocurrency market is
dead and will reach zero, was superb.
Source: CCN
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