Since November 14, the entire crypto market has been on a massive sell-off . In the midst of all those chaos, Bitcoin (BTC)
-1.33 % temporarily fell below the $4,200 level. The budding crypto market is currently filled with speculators. However, there seems to be some stability crawling back into the markets.
The unexpected stability comes way below the somewhat-established floor at $6,200 which BTC
-1.33 % had created in the past several months. During the plummet, the crypto broke below the $6,000, $5,800, $5,000, and $4,800. The trading volumes are increasing which means that the market is recuperating from the extremely bearish sentiments.
Based on the performance of the current market, several analysts and experts believe that a short-term bottom is developing gradually. They believe that the sell-off will continue for the next few days despite the temporary stability. The $3,500 level is seen as the strongest support that is expected to hold despite the bears ruling the entire market for the past week.
According to analysis the price will likely catapult back to over $5,000 after it bottoms out at the $3,500 level. Although it may seem like a small rise after the recent plunge, a bounce from $3.5k to $5k represents around 50% within the past few days of volatility.
The violent volatility experienced in the crypto market is only for the free-willed and adventurous traders. Based on the history of the crypto market, a bounce is inevitable.
Bearish Sentiment Still Looming
Although considerably large payouts may attract swing traders and speculators, some fears are somewhat baseless predictions according to some experts. Lewis Fellas, CIO at crypto fund Bletchley Park Asset Management, described this market as a mania . He believes that the worst is yet to come with a huge potential of capitulation.
According to a trading idiom, ‘up the stairs, down the elevator ’, an excellent case study is Bitcoin
-1.33 % . Crypto- centric investors struggle to bring stability to the market only for a very sharp idiosyncratic volatility to arise. Whatever the experts and analysts say about the current market conditions, the best way to survive is to wait and see unless you are an adventurous trader.
Please note: Cryptovibes.com is not a financial advisor. Do your own research before investing in any financial asset. We are not responsible for your investing results.
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