Christmas Shopping influenced the markets |
Crypto Price Analysis: During the Christmas holidays, the Cryptocurrency markets saw a strong rally. What followed however, wasn’t a Christmas miracle, but rather an intense Christmas Shopping as the next two days the Crypto market lost over $18 billion in market capitalization. Crypto Price Analysis shows that Bitcoin’s great surge back to $4300 was followed by a dip below $3700 just few days later. Bitcoin Cash suffered a slower decline as it lost around 25% going down from $230 to $170 for the same period.
At first, it looked like pretty rough news for investors who were very positive during past two weeks. Bitcoin and other major assets showed a promising recovery and things were looking grim after the Christmas Shopping and holidays. Many Crypto analysts were quick to make their Crypto Price Analysis and warn that the Crypto market is still far from bull territory and high volatility in the low price range was almost guaranteed. But after the dust had settled, the market started a strong and steady recovory run. Crypto Price Analysis shows that the market is signaling signs of strength, resistance and a lot of support came through to stabilize it.
At both graphs from Coinmarketcap, you can see a rapid volume increase during the holidays for Bitcoin and Ethereum. Christmas Shopping was definitely a factor in the latest Crypto events and this Crypto Price Analysis. Experienced investors can foresee these price and volume fluctuations. Considering these and other factors, investors can predict the reversal of the price trend and take advantage of it. Bitcoin’s rally started earlier than Ethereum’s – a week before Christmas. Bitcoin’s volume peaked on December 21st with more than $9 billion in daily volume, more than doubling from 5 days before.
Crypto Price Analysis shows that on Christmas Eve, a new Bitcoin rally started, but this time the selling was far more than the buying, another signal that intense Christmas Shopping was happening. The Christmas Shopping was both ways during the holidays, because a lot of people were selling their Crypto to buy gifts, but also a lot of people bought Crypto for themselves for Christmas. The low Crypto prices are a great entry point for everyone and a lot of people took advantage of it.
Crypto Price Analysis: Christmas Shopping influenced Markets
Before the Christmas rally that added over $40 billion to the Crypto marke capitalization, a crypto trader by the nickname “The Crypto Dog” stated in his own Crypto Price Analysis:
“Bitcoin support was at an all-time high at $3000. Earlier this week, I noticed Bitcoin’s volatility and sell volume decline along with the price. This lead me to wonder if the “$3000 support” would turn out to be a front ran. It was and bulls were able to push past $4500, and the last bump before reaching $5400 would be $4800. This time, I cannot even see a rally beyond $5500. I cannot even guarantee a mere relief past $4500, but of course any scenario can eventually play out so having a minimal option is always nice”
Now, both the $4800 relief and the $5400 rally seem like far-fetched scenarios. In order for the price to rise in a stable way, the market will need to go through several month-long consolidation and accumulation periods. During these periods, the value of Cryptocurrencies will be able to gradually rise against the US dollar in a turbulent fashion.
The lowest price for Bitcoin in 2018 remains $3120. After the drop, an immediate wave of buying was created and that allowed the crypto market to recover. Ethereum was probably the big winner from the leaders and it took the opportunity to reclaim its number two spot by market capitalization. Ethereum also had a pre-rally, but on Christmas Eve Ethereum’s volume escalated with over $4.3 billion in daily trading volume.
The same sequence of events happened with Ether, a rally, selling after and a strong stabilization to top it all off. A lot of Ethers changed ownership during the holidays and some people received the perfect Christmas Gift – some Ether. From all leaders, Ethereum looks the strongest now and a uptrend has formed. January and February of 2019 will be crucial for Ethereum. 2019 will be a big year for the project, because the last upgrade Serenity is comming. Before the hard fork, another rally could form for Ethereum and many investors will be prepared, but it’s worth to point out that the road will be turbulent and full of surprises. Stay tuned for the next Crypto Price Analysis, where we will disect the market further.