Since January 14, after a minor correction, the crypto market has added a whopping $6 billion to its value, and the Bitcoin price has maintained its stability. Many cryptocurrencies, especially low market cap tokens have fallen by a substantial amount in this week, but Bitcoin has maintained its tight spot between $3,400 to $3,600.
The abrupt decline in the value of the crypto market triggered mainly due to the weakness in the short-term price trend of smaller digital assets. In the last four days, Bitcoin has barely moved with respect to its prices and hence has demonstrated a high resistance level.
Luke Martin, a cryptocurrency technical analyst, told that the breakout of the Bitcoin price above $3,700 might allow the dominant cryptocurrency market to record a promising short-term price movement in the upcoming days.
Martin said– “BTC has been battling to reclaim their range all this week. If price can get back to more than $3,700, I’m more excited about alt positive momentum that would continue.“
Bitcoin has remained as the only major cryptocurrency which has been able to sustain a level of stability during a period of extreme volatility and uncertainty.
Reports suggested that the fundamentals of the asset are the reasons it has outperformed most of the crypto assets in the global markets. Bitcoin has surpassed its competitors throughout the past 12 months in areas which include hash rate, developer activity, transaction volume, and trading volume.
Bitcoin being the world’s first cryptocurrency has managed to remain as the most prominent and decentralized currency of all.
The analyst wrote thus- “As always, Bitcoin has been chugging along, and it has gained a larger share of the news coverage due to the growing number of ‘bear market casualties.’ Bitcoin-related articles have a peak of 42% by the end of 2018. Blockchain articles have also maintained their prominence and have peaked by nearly 20% of articles in the month of May.“
During the bear market, many cryptocurrencies and blockchain projects are evaluated, and this drops by a substantial amount. This decline in valuation has made it less expensive for new companies to enter the cryptocurrency market to acquire as well as hire, commonly known as acqui-hire, which will also reduce the costs that would be incurred when various types of attacks on blockchain networks occur.
Last week as well, Ethereum Classic suffered a 51 percent attack that further led to the loss of more than $1 million.
Through the months to come, until cryptocurrency market recovers, Bitcoin has been expected to perform better than the expectations in most of the crypto assets due to the fundamentals being strong.
According to ATHCoinIndex, Bitcoin has performed better than expectations in the top ten largest cryptocurrencies present the global market by margins which are significant since 2018.
The cryptocurrency market is being expected to demonstrate a high level of volatility in the upcoming days. But before a market is established properly, analysts have expected that the low market cap tokens and low volume cryptocurrencies will extend their losses against both Bitcoin as well as the U.S. dollar.