Bitcoin stabilized at $3 ' 400, what's next?

[Paha87]

Over the past 48 hours, the bitcoin price has stabilized at around $3'400 after falling on December 7 to a new annual low of $3'210.

Over the week, BTC rose six percent from $ 3 '210 to $ 3' 400, but the cryptocurrency market lost $ 14 billion in capitalization, mainly due to unsatisfactory performance of major digital assets and the fall in the value of ERC20 tokens.

The price of ether (ETH) also recovered slightly by analogy with bitcoin, but ETH recorded an eight percent increase in value, rising from 83 to 90 dollars. The price of Bictoin Cash remains at a record low of $ 94.

The growth in demand for purchase

According to Suu Zhu, CEO of Three Arrows Capital, the demand for buying bitcoin for Fiat on major crypto-exchanges such as Coinbase and Bitstamp has grown significantly over the past few weeks.

The growing volume of purchases on major platforms for trading digital assets suggests that a small group of investors begins to accumulate bitcoins, while remaining extremely volatile in a narrow low price range. Zhu explained:

At 10% lower ($3'300), BTC purchases at Coinbase now reflect the highest demand since mid-2015. Similar for Bitstamp.

If there is a major unexpected sell-off, the daily volume of bitcoin, which fluctuates at about $ 4 billion, should jump to its monthly maximum of just over $ 6.5 billion.

Over the past seven days, the volume of the dominant cryptocurrency has continued to fall as the price of the asset has stabilized in the range of $ 3'300 to $ 3'500. The decline in the volume of BTC mainly shows that the sales pressure on the currency fell after its fall to a new annual minimum.

As a cryptotrader and technical analyst under the pseudonym Hsaka said, "until BTC overcomes serious resistance, it will likely remain in the $ 3'300 to $ 3'500 range."

Short-term growth?

Currently, based on market trends since the beginning of December, it is becoming increasingly likely that bitcoin will spread its negative sentiment in 2019. Until the currency begins to show signs of long-term stability and the beginning of the consolidation period, volatility is low and the current price range is expected to remain.

Link to the source of information (Russian) - https://altstake.io/news/bitkoin-stabilizirovalsya-na-3400-chto-dalyshe