The crypto market has been unfavourable for the majority of cryptos such as Ethereum (ETH), Ripple (XRP), Bitcoin Cash (BCH), Litecoin. But good enough, Bitcoin (BTC) has managed to increase by around 20% from December 17 when it was trading at $3,181 to December 20, 2018 trading at 3,801, at press time. Moreover, the rally seems to last as the price went up to $4,091 in a couple of hours. The recent crypto rally led the market cap not to fall below the valuation level of $100 billion.
On various crypto exchange platforms such as Coinbase and Bitstamp, BTC has just corrected to $3,785 and its breakout above the $3,800 level has made several
analysts say that BTC will see the next resistance levels in the ranges of $3,900 and $4,500
Mania Formed on a Real Thing
As the crypto market is recovering, some crypto maniacs ratify their significant predictions on virtual currencies. The head of crypto merchant bank, Galaxy Digital Holdings Limited, Michael Novogratz, is optimistic that BTC will outlive this bubble and even emerge an ‘effective store of value.’
“This is a mania built on something real. I am certain we will have a digital store of wealth. I think it will be Bitcoin,” he revealed in a recent interview with Bloomberg TV.”
On December 17, when the price of BTC was trading close to $3,500, ‘The Crypto Dog’ – an online crypto trader revealed that Bitcoin could likely fall below the $3,400 level if it doesn’t increase to $3,800.
The analyst revealed:
“Bitcoin consolidation below resistance. If we lose strength, I look at $3,400 for support. Below there I am concerned. A breakout and I’m eyeing $3,800.”
Less User Activity in dApps – ETH
Analysts have also blamed the plunge in the value of other major cryptos like ETH and BCH on the lack of required fundamentals. ETH has registered a low user activity in dApps and also, BCH is still hustling to gain merchant adoption.
Whether both significant cryptos and other minor ERC20 coins can easily keep their momentum in the coming weeks and also maintain the price range that they gathered recently is yet to be seen.
However, Tom Lee, Fundstrat revealed that BTC’s fair price was trading around $13,800 and $14,800. Joerg Molt, BTC’s co-founder at Satoshi School, said that he is
waiting for Bitcoin to rally closer to $20,000 before 2018 ends.