I was surprised checking the price of Bitcoin Tuesday morning and noticed remarkable gain in its value. Bitcoin is presenting trading above $4000 specifically nudging up towards $4025 at the time of filing this report. this is a gain of 8 percent in the past 24 hours according to data from Coinmarketcap.
This marked increase in the value of Bitcoin is apparent in crypto-crypto exchanges. Fiat-crypto exchanges such as Coinbase and Bitstamp are yet to reflect this surge as the coin is yet to trade above $4000 in these platforms.
Nevertheless, it is obvious that the recent upward movement is a correction in the bullish direction following the massive bleeding the coin market has experienced in the past couple of weeks.
As expected, the recent Bitcoin rally has spilled over to all the top altcoin which are currently in green gaining between 3 percent and 9 percent with the exception of Bitcoin SV which still seems to struggle after the Bitcoin Cash hard fork. Its sister fork BCH gained a modest 4.15 percent.
Ethereum which has been overtaken by Ripple as the second most capitalized coin is presently valued $114 having made gains of 9 percent while XRP at $0.37 gained 7 percent.
The recent correction has seen the coin market adding $11 billion to its valuation as most altcoins such as VeChain, 0X and Zilliqua made remarkable gains.
Ready For Full Reversal?
An analysis from CryptoRand, a technical analyst on November 27 prior to the recent rally said,
“Keeping an eye on the daily close of Bitcoin. Looking to print a bullish hammer that could lead the reversal,”
The coin has since then rallied, bringing both price and volume higher than expected considering the bearish inclination of the market. The boost saw the daily trade volume spike to $18 billion from $12 billion.
As Bitcoin ended the day with a positive short-term movement and a corrective rally, the analyst added:
“Bitcoin daily bullish hammer in play. First reversal signal on weeks.”
Another analyst, Don Alt, expressed a similar view citing Bitcoin chart that a short-term rally was imminent.
“Constant bouncing on a strong demand zone. If it fails I expect a very violent move down. If it holds we’ll most likely stair step up. I’m scalping the small TF’s based on this. Should breakout soon otherwise the bulls are in trouble.”
The coin is facing major resistance at the $4,100 to $4,200 range. This is why many commentators have posited that Bitcoin will range for some time stating that scaling $5000 mark may take 3 to 6 months. The reality is no one is yet very certain but a breakout of the $4,150 value is a clear signal of trend reversal.
Be Aware of Tokens
As expected, small market cap tokens have shown the greatest volatility with some making massive gains against the dollar with the recent Bitcoin rally. It is a known fact that small market cap tokens are easier to manipulate and subject to it sometimes.
They are generally down against Bitcoin even with their gains against the USD. With the US SEC still investigating initial coin offerings it deemed to have sold securities, tokens are still very risky investments to go into.