value above $ 100 billion amid traders’ lack of optimism
On 15 December, the digital currency market was at risk of falling below $ 100 billion for the first time since 1 August 2017.
Since then, the market has rebounded slightly, with total market capitalization rising from $ 100 billion to $ 104 billion. However, many technical traders and technical analysts remain cautious about the short-term direction of the asset class.
Not a good period for digital currencies
Since early December, most of the digital currencies in the market have shown extreme volatility in a low price range, indicating that there is no intention of reversing or even finding a suitable bottom.
Also, the price of crude oil fell to a new low this year at $ 3,122 on Saturday, prompting a good number of investors to launch hasty judgment and say that this price is the new bottom for the developers.
Digital currencies are struggling to keep their market value above $ 100 billion amid traders’ lack of optimism
“The price trend is not positive in any way, and no reversal of the trend can be confirmed until resistance levels break below $ 4,000,” said Hasaka, a currency analyst.
The DonAlt digital asset trader also expressed similar sentiment about the ETH currency, the third largest currency by market value in the global market behind the XRP, pointing out that buyers are likely looking for a place to enter the market in the price range Between $ 80 and $ 90.
That major digital assets will go through a consolidation period of several months at a rate similar to that of August to October earlier this year, as the composition showed the lowest level of volatility in recent years, it would be dangerous to consider that the currency has reached the bottom.
The volume of daily trading has almost halved from $ 6.5 billion within three weeks. The decline in the volume of circulation of the dominant digital currency in the period of high volatility indicates that most digital assets are falling in price without significant sales pressure from sellers.
The volume of the fabrication should begin to recover and the market should begin to show some resistance in a tight range of between $ 3,000 and $ 3,500 before reaching the bottom.
At the moment, many traders and technical analysts remain cautious about the short term trend of the Bettoyen, Atherom and other major currencies.
Will the market pass another epic drop?
Outside the digital world, investors in the traditional finance sector face difficulties in dealing with instability in the global financial markets due to volatility in US and Chinese stock markets. This is due to the tension of financial relations between the two parties.
At least for months, it is unlikely that a new wave of traditional financial investors will enter the digital currency market, giving the market some room to breathe.