In the past few days, the industry’s capitalization has fluctuated around $ 130 billion. Both BTC and ETH have stabilized in dollar terms and are traded in a narrow price range.
Several crypto assets, such as Litecoin, TRON and Cardano, have risen in price by 6% -12% over the past two days.
Bitcoin needs a breakthrough above $ 4,500. The
crypto market has avoided a further fall below the $ 130 billion mark. Bitcoin, in turn, on January 4 defended $ 3,800 and stabilized at around $ 3,850.
According to the technical analyst, known in the network as DonAlt, in order to lay the foundation for a strong short-term rally, it is necessary for Bitcoin to overcome the main resistance levels above $ 4500:
Monthly chart: still bearish; a move above $ 4,500 is necessary in order for at least an attempt at a bullish recovery to appear. Weekly chart: limited by weekly resistance, but finally, some bullish impulse has appeared. I would like the asset to start closing above $ 4300.
Currently, despite the relative stability of the last few weeks, the market still remains 43% lower than November levels.
To initiate a strong short-term rally, the capitalization of the industry should jump by more than 80 billion dollars, which is certainly possible if BTC can maintain momentum during the first two quarters of 2019.
At the moment, most analysts expect that cryptocurrencies will pass the final phase of a long bear market by the end of the first quarter of this year, and in the second quarter, assets will begin a gradual recovery.
The crypto industry is still at an early stage of development.
Chris Berniske, a partner at Placeholder VC, said that the cryptocurrency industry is at an early stage of development, and it is still early to speak of it as mainstream.
Until the new asset class becomes stronger and more stable, it will continue to be characterized by a high level of volatility and incredible price cycles.
Berniske noted:
Mainstream? For most people, the crypt is still irrelevant to their lives. If they did not invest in 2017, they forgot about it. If they did, most likely they have a bad aftertaste, and they want to forget about it. I do not say this to break our will. On the contrary. We remain at the stage of the development of the crypt, when the main users are developers and investors. Ahead of us is waiting for a lot of new things and the realization of the promised. It is incredibly exciting.
With the advent of custodial solutions and highly regulated liquidity providers in 2019, an influx of institutional and professional investors can be recorded in the crypto market.
Given the historical trends based on market cycles, analysts expect that cryptocurrencies will pass a long period of consolidation and show a high level of stability during 2019. This will be a sign of the end of the bear market.
