Markets Steady After Yesterday’s Plunge, Analyst Says Bitcoin Is Nearing a Buy Zone
After a day of widespread losses, the cryptocurrency markets appear to have found some stability at their current levels, and one analyst believes that Bitcoin in particular is nearing a buy zone that could prove to be highly lucrative for investors.
At the time of writing, Bitcoin is trading down 4% over a 24-hour period at its current price of $4,500. Although it is down 5%, it has recovered significantly from its daily lows in the $4,200 region.
Because Bitcoin has been able to hold above its next support level at $4,000, one investor believes that short-term traders with an appetite for risk could profit from an imminent bounce.
While speaking to MarketWatch, Jani Ziedins of CrackedMarket said that the inevitable bounce, commonly referred to as a relief rally, will likely occur when Bitcoins price hits the mid-$3,000 region.
“Look for the selling to continue over the next few days, but a bounce off of $3.5k-ish that returns to $5k is likely. While that doesnt sound like a lot given the latest tumble, a bounce from $3.5k to $5k is a nearly 50% payout for just a few days of work. This is not for the faint of heart, but there will be nice rewards for those willing to jump aboard the inevitable bounce.”
Bitcoins trading volume, which peaked yesterday at levels of $8.7 billion, has since subsided to its current levels of under $6.8 billion, and appears to be continuing to decline. The question is whether or not bears will take advantage of buyers fearand continue to push its price into lower regions while it struggles to establish solid support.
Yesterdays plunge led the overall cryptocurrency market cap to fall below $150 billion to its current levels of $146 billion, levels not seen since early-October of 2017.
Related Reading:Bitcoin Falls Below $5,000 for the First Time in 2018 on Coinbase
Altcoins Post Slight Recoveries as Bitcoin Trades Sideways
Bitcoins recent crash has naturally led the altcoin markets down significantly, with many trading down 30% or more from where they were just a couple of weeks ago.
Over the past week, XRP has been one of the best performing altcoins, dodging many of the losses experienced this past Monday. Despite this, the weak market conditions caught up to it on Tuesday, leading its price down to lows of $0.419, from which it has since recovered to its current price of $0.434.
Bitcoin Cash, which has performed terriblyever since its hard fork event occurred earlier this month, on November 15th, is now approaching all-time lows. It is currently trading down nearly 6% over the past 24-hours at its current price of $229. It’s also just a small amount above its all-time low price of $208.37, which was hit in early-August of 2017, shortly after its launch.
It is likely that Bitcoin will trade sideways for a small period of time while the bears and bulls battle for control.
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