In the last 24 hours, the crypto market has witnessed a decent spike in its market capitalization with an addition of $3 billion to its total valuation. The rally in the market was led by Bitcoin and Ethereum as both of these cryptocurrencies performed relatively well against the US dollar. Other altcoins like Cardano, Litecoin, and TRON have also registered impressive gains to the tune of 6 % to 12%. Overall the market makes impressive gains on the day.
For now, the Crypto market has held itself above the level of $130 billion. Bitcoin’s value stabilized at $3,850 as it successfully defended its position above the $3,800 level. Many experts believe that for the Bull Run, Bitcoin has to break through the level of $4,500. One of the technical analysts at DonAlt noted that Bitcoin has to break out above the level of $4,500 – considered as a major resistance level for the coin – in order to enter into short-term rally phase.
In the last few weeks, the crypto market has witnessed increased stability as most of the digital currencies clung on to their positions, showing little signs of volatility. That said, the market is still down by 43% compared against its levels in November 2018. To start a short-term rally, experts opined, that the market has to add at least $80 billion to its market capitalization.
For that, the Bitcoin has to play a major role and has to perform consistently well in the coming quarters of 2019. It is a widely held belief among the experts that cryptocurrencies will undergo the final phase of the bear market in the first quarter of 2019 and after that one can expect the gradual recovery in the following second quarter.
Cryptocurrency Market and Forces
Another analyst at Placeholder VC, Chris Burniske, emphasized the infancy state of cryptocurrency and noted that the market is still in the installation phase. He described the characteristics like domination of the asset class and little involvement of the mainstream to signify evolving nature of the crypto industry. Burniske also stressed that the asset class has to become more robust and resilient to reduce high volatility and price fluctuations in the market.
2019 is predicted to be a good year for the crypto industry as the inventions like custodial solutions and strict regulatory mechanisms are expected to attract mainstream institutional investors into the market. The market is anticipating large account managers and high-profile investors to take a plunge as the overall level of uncertainty is expected to decline this year. Some experts’ opinion also converges to predict a long consolidation path for the cryptocurrencies throughout the year 2019. From the past actions of the asset class which initiated the market rallies in cycles, this year may finally see the end of the bear-phase.