The cryptocurrency markets are rallying once again. The major crypto assets like Ethereum, Bitcoin Cash and Cardano are leading the way with strong daily volumes.
December 24, 2018 | AtoZ Markets - Over the past 24 hours, the flagship cryptocurrency, Bitcoin (BTC) and a majority of digital assets have managed to regain momentum from 2018 lows. At the moment, the Christmas crypto rally has seen the total value of coins in circulation rise to $142 billion, which is almost $40 billion higher than a week ago.
Cryptos Santa Rally is Here!
After a brief decline on Saturday, Bitcoin held support at $4,000 and then spent most of the day trading at the same level. However, BTC has continued its way to the top on Monday as it reached an intraday high of $4,270. Currently, the digital coin is up 5% on the day to $4,240 and is poised to make more gains.
At the same time, Ethereum (ETH) price surged higher to 16% on the day, taking the number 3 digital coin by market capitalization to around $140. After reaching its lowest point in 2018, ETH has made a 75% recovery. This upward trend, however, could see the price climb above the $150 and $155 levels in the near term.
Meanwhile, Bitcoin Cash (BCH) that catapulted above $200 has returned to the fourth position in the cryptocurrency rating. The digital coin is 150% higher than a week ago. At press time, Tron (TRX) gained 65% to trade at $0.021 while Cardano currently making a strong upward move with 13% added.
Moreover, the total market cap has risen for the seventh day in a row. It is now at $144 billion, up by 7.5% from the same time yesterday as $10 billion was injected into crypto market overnight. Daily trade volume is also up to about $24 billion which is also a very bullish sign.
What Caused Ethereum Price to Surge?
Whilst Ethereum price spiked amidst a strong corrective rally, triggered by oversold conditions, short contracts were squeezed out, thus paving the way for the asset to recover.
Although the price of Ethereum has increased by 60% within one week, ETH is still down by 91% from its all-time high of $1,448. The traditional markets usually consider a 20% decline from an all-time high a bear market.
That being the case, Ethereum and the rest of the crypto market, even with a massive corrective rally, are in a bear market while struggling to rebound.
Ethereum Still a Better Asset to Short?
A cryptocurrency technical analyst, Hsaka has stated that Ethereum is a better asset to short because of its recent rally and high volatility. The analyst has been quoted as saying:
“Quite a substantial difference between the Ethereum and Bitcoin structure. If you were betting on correlation remaining the same, and both reverting to structural equilibrium, $ETH seems to be the better play for shorts, and BTC for longs.”
In the meantime, a crypto trader, who is also known online as “The Crypto Dog” has highlighted that Bitcoin is facing several major resistance levels between the range of $4,000 to $6,000. He explained that until the flagship cryptocurrency breaks out of that range, it is difficult to call a bottom in the cryptocurrency market. The trader also added:
$4,000 – $4,500 is major resistance and we could stall out soon. It’s also possible this could go higher, but I do not think it goes much higher than $5,400, certainly not higher than $6,300.
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