At the time of writing Bitcoin is trading up 7.2% at its current price of $4,100, up from yesterday’s lows of $3,700. Although Bitcoin was able to break above $4,000 earlier today, its price continues being rejected at approximately $4,200, which could be a level of small resistance.
Analysts Caution Investors Against Getting Too Excited About Bitcoin Rally
Although the recent market rally that has sent Bitcoin up approximately 30% from its recently established 2018 lows is being seen by many investors as the prophesized “end-of-year rally,” analysts are warning investors against getting too excited about the current price action.
In a recent tweet to his 22,000 followers, Alex Krüger, a popular economist who focuses his content mainly on the cryptocurrency markets, warned investors against believing that the markets are gearing up for a “rabid bull run,” saying:
“Crypto bullish talk is increasing. Some are deriding bears looking for lower prices. Most of these bulls lost a fortune, are deeply underwater, and are actually best ignored… Crypto simply stopped falling. Nothing else has changed. No reason to expect a rabid bull run yet. May easily print new lows in the following weeks. A wide range is IMO the most likely scenario to ensue. Nothing to FOMO into.”
Mati Greenspan, senior market analyst at eToro, doubled down on his recent comments regarding the current rally being the result of short sellers closing their positions, telling The Independent that:
“For those wondering what’s causing crypto’s impressive push from the floor this morning, look no further than short covering. People are looking to reduce their exposure and closing out high risk sell positions before the holidays and this is creating upward pressure on market prices, which is ultimately resulting in a rally.”
Although the current rally is certainly a welcome development for cryptocurrency investors, they should express caution against getting too excited, as further instability could be right around the corner.
Bitcoin Cash Surges Nearly 50%
Bitcoin’s rally has led the altcoin markets to trade up, with Bitcoin Cash being today’s best performing altcoin.
At the time of writing, Bitcoin Cash is trading up nearly 51% at its current price of $198, up significantly from its recently established all-time-low of $75.
Bitcoin SV, the hard-fork offshoot of Bitcoin Cash, is also one of today’s best performing cryptocurrencies, and is trading up 30% at its current price of $118.8. Bitcoin SV is currently behind Bitcoin Cash’s market capitalization by nearly $1.5 billion.
Ethereum is also having a positive day of trading and is trading up over 10% at its current price of $115.7.
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