Crypto Market Recovers by $3B: Oversold Conditions Show Bitcoin Bottom
In the last 24 hours, the valuation of the crypto market increased from $137 billion to $140 billion after a minor recovery of around 2 percent. Both major cryptocurrencies and small market cap tokens have ended the day with relatively minor losses in the range of 1 to 3 percent. The volume of Bitcoin (BTC) has dropped from $5.5 billion back to $4 billion over the past several days, by more than 27 percent. Given that the value of BTC has not fallen substantially during the time wherein its volume fell, a case can be made that the sell-pressure on the dominant cryptocurrency has subsided. A cryptocurrency trader and economist Alex Krüger explained:“Yesterday, BTC triggered my main oversold signal on the daily. This signal printed only once before: Jan/17/2015. Very close to a bottom that held for eight months, and was breached only once ever after, briefly, during the Aug/18/2015 flash crash.”Generally, after a 30 to 40 percent drop, major cryptocurrencies tend to recover in the mid-term, as seen in the case of Ripple (XRP). A similar trend could be portrayed by BTC in the upcoming weeks if the asset could begin demonstrating stability at its low price range.Even if BTC falls below the $4,000 mark prior to engaging in a corrective rally, which is a possibility given that the $4,000 support level was tested twice in the past five days, stability in the range of $3,800 to $4,200 could allow BTC to establish roots in the $4,000 region and signal a bottom.“Some nice buyback wicks showing up, but don’t think we’re out of the woods until a daily close above green,” noted Hsaka, a cryptocurrency technical analyst.
Bitcoin (BTC) is down 0.45% over the past 24 hours and is currently trading at $4,305.10 on Coinbase. BTC dominance is at 53.9% and the total cryptocurrency market cap is currently at $139 Billion.