Bitcoin is Jingling as “Crypto Santa Rally” Continues While Stock Market Falls Further
If there is one thing that you cannot say about the crypto market is that the market is “unlucky”. In fact, investors from this market often reap greater rewards than the ones from more traditional stocks. As the year is finishing and Christmas is upon us, the bear has decided to take a nap and we are seeing a small rally happening now.
The Santa Rally
The so-called Santa Rally is causing envy for the more traditional stocks as they are plummeting in a very atypical year with the effects of the U. S. – China Trade War and some other reasons. The losses of the crypto market have stopped a bit when the market has found its floor at the valuation of $100 billion USD. Since then, the market is 30% up and keeping the trend upward.
30% in only a couple of days is a very exciting prospect. No move like this one was seen since April 2018. It took almost eight full months for the market to get an up trend again. At the time of this report, the market cap of the crypto market was about $140 billion USD. This shows that some investors are returning for 2019, which is a great sign.
However, one should not be too optimistic about the future just yet. The market, which had its highest point at $650 billion USD, is down 87% now and there is a chance that it has now stopped at rock bottom just yet.
Some cryptos, like Ripple’s XRP, are getting huge gains in the last 24 hours. XRP was able to go over 22% while Bitcoin was “only” up 5.5% in the last 24 hours. Other big winners were Ethereum (15%), Stellar (12.5%), EOS, Litecoin and TRON (all around 11%).
Bitcoin’s Road Away From The Bottom
Before the “Santa Rally”, Bitcoin was going down. It found some resistance above $3,200 USD and then things started to get better and better. Now, Bitcoin’s price is about $4,400 USD and there is a good chance that the market might find a new resistance point in the $4,000 USD mark.
To signalize a real bull run, though, Bitcoin has to do better and stay above $4,500 USD for a while. Only when the token is up from $6,500 USD again some investors that have lost their faith will start to pay attention in the market again, so it is still too early to declare another bull run at the moment.
Unfortunately, only when Bitcoin is above $4,000 USD for a while and it shows signs that it is really strong the investors will get their confidence. The market is helping, though, as the traditional stocks markets are having a very bad year in 2018.