After achieving $4,097 in global average price according to data provided by Coinmarketcap.com, the bitcoin price has retraced to $4,027 and below the $4,000 mark in some major markets.
As bitcoin fell by just over 1 percent against the U.S. dollar, the valuation of the crypto market declined from nearly $142 billion to $139 billion in a matter of hours.
A widely recognized cryptocurrency trader known to the community as “The Crypto Dog” said that bitcoin could still hit the $3,500 mark in the short-term and that the conditions of the market haven’t changed in the past several days.
“I think we could still see $35XX,” the trader said, adding, it [bitcoin]hasn’t changed much. It wasn’t a particularly significant move. It bounced at a clear support, but there’s been no positive reaction yet. If this support holds, I expect a sweep of the highs near $4,100-$4,140.”
WHY BITCOIN TO MID-$3,000 IS EXPECTED
Earlier this week, the trader noted that despite the momentum of bitcoin and its recent upside movement, the dominant cryptocurrency could still fall to mid-$3,000.
Decent chance we just saw that ‘one more leg up.’ I greatly reduced exposure up here above $4,000. Waiting for $3,5XX for long entries. I’d love an opportunity to short $4,1XX, but not sure if we’ll see it.
The cautious optimism towards the price trend of bitcoin by many traders and technical analysts likely comes from the performance of BTC in recent months.
Since late 2018, bitcoin has struggled to sustain momentum following an extended period of stability. In November, for instance, after remaining relatively stable in a tight range from September to November, the bitcoin price plunged from $6,395 to $3,236 within a month.
1-Day Chart of the Bitcoin Price (Source: Coinmarketcap.com)
As such, from a technical standpoint, an increasing number of traders have begun to be cautious about the upside movement of the cryptocurrency market, unsure whether bitcoin can sustain its momentum in the weeks to come.
Previously, in an interview cryptocurrency technical analyst DonAlt explained that a break out of at least the $4,600 resistance level is necessary to conclude that the bear market is over and that a full trend reversal is in play.