December 15, the total market capitalization of the cryptocurrency market was could fall below $ 100 billion. Despite a sudden rise to 104 billion dollars, many traders and cryptocurrency technical analysts make depressing predictions regarding the short-term trend of this asset class.
From the beginning of the month most of the cryptocurrency and tokens with a small market capitalization show an extraordinary volatility in the low price segment. However, no signals about changing trends or reach the bottom yet.
After the update of the annual minimum value of Bitcoin, which occurred December 15, the majority of investors decided that this cryptocurrency has reached the bottom, so it's time to buy this asset. Hsaka, a cryptocurrency technical analyst, stated that the price trend of Bitcoin is not in a hurry to please the traders. This can happen only after the price trend has overcome several resistance levels below 4 thousand dollars.
"As long as Bitcoin will not reach $ 3300 dollars, do not expect changes to current situation. Your obsession with reaching the bottom of the cryptocurrency directly proportional to the erosion of your account."
Digital asset trader DonAlt spoke in the same thing in relation to Ethereum. He said the bears are likely to find a place to enter a short position in the range of 80 to 90 dollars.
He also added:
"If Ethereum will have to overcome the combination of resistance, I'll be the first who will buy this asset at a low rate. Ethereum is a great place to look for short positions for many bears. If this resistance fails, we will have good prospects. While the main digital assets are in the process of many months of passage of a period of consolidation for the same parameters as in the period from August to October, you should not engage in accumulation of assets."
Over the past three weeks daily trading volume of Bitcoin has decreased almost two times — to $ 6.5 billion. The decline in the volume of the main cryptocurrency in the background of high volatility suggests that the cost of most digital assets is reduced by itself, without the aid of sellers and the bears.
It is expected that the trading volume of Bitcoin will rebound and the market will start to show resistance in the range from 3000 to 3500 dollars, before he fully fall to the bottom. Today, many traders and analysts are very wary of short term trends Bitcoin, Ethereum, and other crypto assets.
The traditional financial sector is also trying to deal with the lack of stability in the global financial market, which has arisen due to the volatility of the American and Chinese stock markets. Experts believe that in the next few months, we should not expect mass coming of the traditional investors in the cryptocurrency space.