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article imageBitcoin breaks through $3,700 briefly as crypto market booms

By Ken Hanly     Feb 9, 2019 in Technology
Yesterday the crypto market surged from a total $111 billion capitalization to $121 billion a jump of $10 million after several lackluster weeks. The market is nearly recovered from January levels of about $130 billion.
Litecoin makes a big jump and Bitcoin rises
made a large gain as reported in a recent Digital Journal article. EOS also rose in the 15 to 20 percent range.
Bitcoin(BTC) rose 11 percent from $3,337 to $3,711, yesterday according to Joseph Young in an article earlier today. It had retracted somewhat to $3,616 today.
Young argues though that Bitcoin has not yet reached a properly established bottom just yet and could still drop below the $3,000 support level.
Bitcoin not out of the woods yet
Naeem Aslam of UK Think Markets said: “For the past few weeks, we have not seen any significant movement in the bitcoin price. We are stuck in a price range of $3,183 (17 December low) to $4,234 (Dec. 24 high), as long as we are not breaking out of this range, there is nothing new.”
Throughout this month many analysts point out that Bitcoin needs to recover and reach the $4,000 to $5,000 range before it can confirm a breakout beyond a key resistance level.
If BTC stays in the $3,500 to $4,000 range there is a low probability that it can initiate a rally back up near its all time high of almost $20,000. Given the uncertainty about the action of BTC in the short term traders expect the coin to demonstrate further sideways action.
Crypto analyst Mayne wrote: "Maybe the low is in and it’s an uptrend from here to ATH. Maybe we form a range and go sideways. If you are worried about missing the next bull run because of today, chill. The goal is to catch the majority of the move, few will buy at or near the low and hold to ATH. " "ATH" stands for "all time high".
Traders somewhat more optimistic
The strength of the crypto market during the last 48 hours has generated a more optimistic view of the near term prospects for Bitcoin and other crypto coins. Hence, the case can be made that Bitcoin is not likely to drop by a substantial margin during the coming weeks and likely bringing down the rest of the market at the same time.
Earlier in the week, Hsaka, a crypto trader said that shorting Bitcoin at $3,300 was a risky business because of the resilience of its support levels that have been tested since December. Haska said: “Wouldn’t short this right now: sitting at daily support, consolidation (3340 -3480) lows taken, beginning to round off. If we do pump, interested to see how price reacts to the 3440-3450 zone."
So even though it is not yet confirmed the bottom is in for Bitcoin at $3,122, analysts see BTC and the total market performing reasonably well at the $120 to $140 billion levels. As long as technical indicators continue to indicate a longer corrective rally and are also supported by fundamental factors over the short term the momentum should continue upwards.
Present situation
24 hours ago Bitcoin was trading at $3,617 according to Coindesk data. The high has been $3,638 and the low $3,577. The trading range is rather narrow and the movement basically sideways. At 15:10 Central Standard Time the price was at $3,615 a mere two dollars below its open. Bitcoin may be consolidating before its next move.
The major bitcoins are showing a mixture of ups and downs. However, Litecoin is up another 4.5 percent and EOS is also up over 2.3 percent. The present price of Bitcoin and other coins can be found here.
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