Bearish sentiment has not left the cryptomarket just yet; BTC will continue dropping

Bearish sentiment has not left the cryptomarket just yet; BTC will continue dropping
Jan 6, 2019 by Rico Wise

Over the past couple of months, BTC value has recorded recovery from 3,210 USD to 3,850 USD by almost 20% subsequent to displaying an abrupt demand growth in a low price area.

Lots of cryptoanalysts are of opinion that BTC is on its way to setting up a decent bottom and starting a steady price growth in the long run.

Per Mike McGlone, a Bloomberg Intelligence analyst, the most dominant digital currency will most probably have to sustain an extended bearish cryptomarket in Q1 and Q2 of 2019.

McGlone suggested that the latest recovery action performed by BTC is a near-term bounce prior to reaching the last stage of the bearish market. He also stated that the shortening of that sell-off is a proper incentive for the bounce to occur. However, as soon as the bounce ceases, the bearish market will return for some prolonged timeframe.

As previously reported, there is a chance for Bitcoin to drop lower than key support areas in the event that the dominant digital currency fails to perform a breakout from the major resistance levels over the 4,000 USD level.

From November to December, all of the dominant digital currencies displayed extreme instability in a low price area without any signs of stability on the horizon. Over the past 90 days, the daily trading volume of digital currencies, on average, was at approximately 15 billion USD, which is considerable low given that the cryptotrading activity of a digital currency has a tendency to grow in the periods of price volatility.

With the daily trading volume of digital currencies, specifically currencies other than BTC and ETH, at yearly lows, a breakout action over the major resistance areas does not seem probably in the near-term.

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