Bitcoin Price Clings to $3,600 as the Search for a Bottom Continues
Bitcoin’s price continued to drift sideways on Thursday, as a lack of trading catalysts kept markets subdued following an active start to the week.
Stuck in a Range
After breaking out to the upside at the start of the week, bitcoin has managed to trade within a narrow range over the past 48 hours. The leading digital currency by market cap is currently valued at $3,628.23, down 1.3% from the previous day. Trading volumes remain elevated near $5.2 billion despite a sharp drop off in volatility.
Bitcoin’s 30-day volatility index, courtesy of bitvol.info, declined to 4.25% on Wednesday. Volatility has been in firm retreat since December, when it peaked at nine-month highs.
That being said, bitcoin’s narrow trading range reflects a lack of direction in the market as opposed to newfound stability. A failure to break above $3,700 in the short term could put BTC on the backfoot and vulnerable to fresh waves of selling. This is fairly consistent with the trading patterns we’ve observed since the onset of the bear market last year.
At current values, bitcoin has an overall market capitalization of $63.4 billion. Its dominance rate has strengthened to 52.4%, which reflects broad pressures on altcoins and tokens.
Search for a Bottom Continues
Although some analysts have already called bitcoin’s bottom, others are convinced that new lows are likely before the market makes a definitive turn. Jani Ziedans, an analyst at Cracked Market, believes bitcoin is demonstrating a lethargic base, which signals weak underlying demand. This continues to be the case insofar as bitcoin struggles in the mid-$3,000 range.
Morgan Creek Digital’s Anthony Pompliano has also stated that bitcoin will probably fall below $3,000 before the bottoming process finally concludes. This comes despite a more than 30% bounce from the December low near $3,100. Read more: Crypto Markets Search for Catalysts as Bitcoin Lightning Network Sees a Surge in Capacity.
Nevertheless, 2019 looks to be a year of accumulation for bitcoin as prices consolidate in the $2,000-$4,000 range. The anticipated influx of institutional investors, combined with the sharp rise in circulation on virtual exchanges, means trading in BTC is likely to grow as the year progresses. According to analyst Willy Woo, these and other factors may put bitcoin on the path to recovery by the third quarter.
Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
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