A new year begins and with it, renewed expectations that the dominant bearish trend of 2018 will end soon. 2018 is now referred to as the year of correction in the cryptocurrency market. Digital assets led by Bitcoin trimmed most of the gains accrued towards the end of 2017 and early 2018. Moreover, the market value declined significantly by more than $700 billion to the current $129 billion. In addition to that, Bitcoin formed new 2018 lows after it broke below the major support areas at $6,000 and $5,000 respectively. Investors are now hoping that January will see bitcoin & altcoin recover ground over possible fund flow from institutional investors. There are various factors that are believed to be the main driving forces for the impending bullish reversal.
Ethereum Becomes Most Values Crypto In Immediate Market Ahead of Constantinople Upgrade
For instance, the approval of a Bitcoin exchange-traded fund (ETF) will see fresh influx of money from traditional and institutional investors. Improvement of the regulation environment will also increase confidence in the market. Another factor is mass adoption; this is directly linked to Bitcoin gaining more real world use cases. Bitcoin recently broke out of a long-term descending channel. This move reversed the bear trend that had been dominating the market for a while now. While the retracement made it above $4,000, buyers lacked the power to keep the price above this level paving the way for a bear correction that recently tested $3,650. As of writing this article, BTC/USD pair is trading at $3917 up by 3.65% on the day having gained a bullish boost when trading session began post new year holiday and has since maintained consolidative price action above $3840 mark hinting at signs of bullish rally.
While major crypto currencies Bitcoin & Ripple failed to take advantage of recent bullish rally, Ethereum has managed to make a short work of same. Ethereum has been hottest crypto commodity since last week of December 2018 and is currently on pace to regain the second place in terms of market cap as largest crypto currency which it previously lost to ripple. Since early European market hours, ETH/USD jumped nearly 14% from intra-day lows and has breached resistance at $150 level which makes it the most traded legacy crypto currency. The strength of Ethereum’s upward movement coincides with the upcoming launch of Constantinople, the Hard Fork that promises to improve the performance of the network. The market highly anticipates this implementation, due on January 16, and until then the money will continue to run to Ether making it most valuable altcoin in short term.
This article was originally posted on FX Empire
More From FXEMPIRE:
- Gold Price Forecast – Gold markets continue to march higher
- 2019 Gets Off To A Sour Start, Manufacturing Activity Slows, More Tariffs May Be Needed
- USD/JPY Price Forecast – the US dollar continues to fall
- Silver Price Forecast – Silver markets continue to grind higher
- Will 2019 be the Year where Investors Sell Everything?
- Natural Gas Price Forecast – natural gas markets continue to show signs of weakness