Bitcoin and a range of other altcoins have had a good start to January 2019. Today bitcoin’s price broke through the $4,000 barrier, surging by 6% on the day. Some think it is a short-term rally, while others think the major cryptocurrency may hold out for longer.
CCN suggests that bitcoin’s recent 20% increase in its daily trading volume may indicate that it can keep some momentum above the $4,000 mark, but others have declared that the price increase is not enough to safely say that this trend is anything other than short term.
DonAlt, a cryptocurrency technical analyst, told CCN, “Finally an impulse. If today closes above resistance (4000) I’ll be looking for buy opportunities/close my hedge short. If it closes below resistance I’ll be looking for shorts. Dangerous to trade in any direction with the Finex maintenance coming up tomorrow.”
Other commentators on the sector see the price trend as “lacklustre”, with one saying, “Another day, another lacklustre move. Is this the top? I’m looking for $180B if we can turn $140B into support, otherwise not much too get excited about just yet.”
Another trader said that bitcoin would have a “boring” first quarter in 2019: “The good news is that the low is likely in. The bad news is that we go sideways here for another 6+ months before moon mission starts again for new ATH’s. The good news about the bad news is that with BTC going sideways for 6+ months (If this Forecast Map is in anyway accurate) then we’re having a nice long [alternative digital asset] season.”
One of the key elements for bitcoin’s fortunes is its daily trading volume, and that is the thing to watch over the next few weeks. CCN says, “Throughout the past two weeks, Bitcoin has maintained a volume of over $4 billion. This is lower than its average volume at around $4.5 billion. Currently, volume hovers at nearly $6 billion. If it can sustain such a high volume, BTC will be able to sustain its momentum.”