After many months in which Bitcoin went down, it now started to go up and managed to see the first positive week in a long time. Bitcoin managed to move from a one year low of $3,150 to quite a high for the period, $4,225. Other altcoins also experienced price increases.
The market dominance of BTC fell to 52.83% from the previous 55%. Volume returned to the market, with numerous exchanges reporting increases, up to a total of $14 billion on Friday. The result was an environment where cryptocurrency value grew above the $131.9 billion mark, which is 30 percent higher than the year-to-date low that was established just one week before.
Retesting The $4,000 Mark
After it managed to go over $4,000, BTC did slow down, ending up as high as $4,200. Then, it went down to $3,850. Even so, the crypto market did start to go up again, with BTC testing the $4,000 for the second time in just one week. There is no foothold established about this rather psychological $4,000 level.
Is A Bullish Breakout Imminent?
For many, retesting the $4,000 mark is an indicator of bullish action but analysts are not yet convinced. It is possible that this uptick is just a re-test, with prices potentially falling hard. According to market analyst and researcher, Alex Kruger, the growth was caused by the RSI (Relative Strength Index). This practically means the surge is a correction of levels that were oversold, not a bullish industry shift.
Obviously, there are also some analysts that claim a long-term bottom value was formed. December 20 was identified as being the highest trading point in value for the past 10 years. 2,226,735 BTC were traded at an average sum that was just a little under $4,000. This basically means a little more than 10% of all the BTC that will ever exist was traded.
Obviously, it is just way too early to say this is a bottom value, especially in the world of cryptocurrencies. Always use common sense when you trade.