Does Bitcoin price (BTC) is set to create big price rally before Christmas? Bitcoin price (BTC) extended its downside volatility during the weakened trading; the largest coin plummeted below $3500 level on Sunday – which is considered as the lowest level of this year.
The cryptocurrency market had experienced the worst losses over the last two weeks. The largest coin plunged more than 36% in the last week alone. BTC started last week around $5500, and it has hit new yearly low on Sunday, representing the worst weekly loss in the past five years. The rest of the market has also been following the same trend.
Ethereum (ETH), Ripple (XRP) and the reaming top ten digital coins were in the red all over the last week. The total cryptocurrency market cap dropped to $120 billion during Sunday trading, the level that market hasn’t seen since August 2017.
Market Could Bounce Back Amid Santa Claus Rally?
Although the majority of traders and analysts don’t know where the market would stand by the end of the year, a few bulls are optimistic that bitcoin could generate rally ahead of Christmas.
Mati Greenspan, a crypto analyst at eToro, is among the analysts who are expecting the largest coin to move either way.
He said: “I’ve been saying from the beginning of the year when people were asking for my end year predictions, is that I can say with a 99 percent certainty bitcoin will be between $100 and $1million on December 31.”
The eToro analyst, however, see some hints of upside potential after BTC has a hot critical support level of $3500 on Sunday. The arrival of Christmas season is also one of catalyst for Mati Greenspan.
Top 10 CryptoCurrency Price Analysis Today
Explaining his argument, he said, “I’m hoping there will be a Santa Claus rally especially now that we’re looking at the entire year as one defending triangle on the charts and we’ve now broken out of the triangle and hopefully bitcoin’s got it out of the system now.”
Which Factors Impact Price Movement?
The eToro analyst is surprised by the recent movement of crypto markets. He believes the recent selloff was supported by a specific event instead of fundamental factors. Despite moderately blaming the Bitcoin Cash Hard Fork for the selloff, he said it’s difficult to narrow in on what precisely jolted the prices because the market is “still under construction.”
“In crypto, these things are still being built – there is no industry standard.”The only metric that we can go by is the price. What is somebody willing to buy it for and what is somebody willing to sell it for,” he added.
Bitcoin price bounced back to $4000 level after tasting new yearly low of $3500 on Sunday. Overall, the market is waiting for catalysts that could help the virtual currencies to come out of the bearish trend. The support from institutional investors could play a key role reviving the confidence.