Cryptomarket records 7 billion USD gains; BTC and ETH bounce back by 5 percent

Cryptomarket records 7 billion USD gains; BTC and ETH bounce back by 5 percent
Dec 2, 2018 by Rico Wise

The world’s most dominant digital currency was successful in defending a considerably fragile support level at 4,000 USD. Ethereum has also fought back against the possibility of an increasing decline below the 110 USD level.

Nevertheless, due to the actual level of momentum of dominant digital currencies over the past few days, if the most popular digital asset does not exercise a clean breakout from the 4,000 USD range to enter the 4,200 USD level, a short-term decline to the middle of 3,000 USD area might still take place.

BTC and ETH are the only two digital currencies currently holding a confident daily volume of cryptotrading. As of yesterday, the daily Bitcoin’s volume was at approximately 5.5 billion US dollars, whereas Ethereum’s volume displayed stability at 2 billion US dollars. As for the trading volume of the latter, it exceeds the combined daily volumes of such digital assets, as XRP, BCH, and XLM.

According to numerous reports presented over the past 30 days, the latest sell-off of Ethereum tokens did not face any great impact from the liquidation of ETH by ICO startups.

The increase of the trading volume of Bitcoin and Ethereum proposes that these digital currencies are not experiencing a free fall with low sell pressure, which makes them differ from the most of the dominant digital currencies and lesser market capitalization tokens in the cryptomarket.

The issue with trading digital currencies with small volume in a very unstable time lies in the fact that in the event of sell orders hitting the cryptomarket, cryptocurrencies with small trading volume are going to be the first ones to record a substantial drop.

Additionally, good daily trading volume made it possible for Bitcoin and Ethereum to make a 5% recovery over the past day, whereas Ripple and Bitcoin Cash displayed price growth in the ballpark of 1.5-3%.

Should Bitcoin and Ethereum manage to exercise a clean breakout over the key resistance levels, that are 4,300 USD for the former and 120 USD for the latter, the two digital currencies might take the cryptomarket in a confident short-term surge.