Despite bitcoin’s market value is going down this previous weeks, measured in dollars, last year’s damage has been much more significant. Roughly $700 billion has been wiped off cryptocurrencies global market capitalization since the high, according to data from CoinMarketcap.
Following the market’s recent volatility, Bitcoin has been able to climb back into the $3,600 range and has further confirmed $3,550 as level a level strong support. Bitcoin’s slight price rise yesterday Jan 23, 09:23AM ET, while some cryptocurrencies also increased over 4%. As of the moment, Bitcoin trading up nearly 1% at its current price of $3,600.
This past weekend, BTC surged to high of nearly $3,750 before tracing back down to its long held support level at $3,550. This level once again held strong, but the coming bounce has been relatively weak. Because Bitcoin has continued to range sideways and is showing few signs of growing fundamental strength.
Jani Ziedins of the CrackedMarket blog recently told MarketWatch that he believes each price bounce is a good opportunity to sell before it drops lower. Alex Krüger, an economist who focuses on cryptocurrencies, shared a similar sentiment, noting that although Bitcoin rose sharply from a brief test of $3,450, the current movements are simply “crumbs for traders,” further adding that he doesn’t see any significant bullish trend emerging until late February.