The largest crypto by market capitalization, Bitcoin or BTC, has reached its 14-month low of $3,474 on Monday, the 26th of November, having revived the long-term bear market with a convincing move below the crucial 21-month exponential moving average or EMA support on the 14th of November.
An increase in the price of BTC by market capitalization
However, according to the market capitalization, in the last 24 or more hours, the price of Bitcoin or BTC has increased more than 8%, reaching $4,000. On fiat-to-crypto exchanges such as Coinbase and Bitstamp, BTC is still to surpass $4,000 mark, but on crypto-to-crypto trading platforms, its price hovers at around $4,100.
This positive price action also indicates the cryptocurrency is finally paying heed to oversold conditions, which was reported by the 14-day relative strength index or RSI since the 15th of November.
Fueled by the corrective rally of BTC, some of the major cryptocurrencies in market capitalization, such as Ripple or XRP and Ethereum or ETH recorded gains in the range of 6 to 9%, with ETH rebounding to $115. The crypto market added $11 billion to its valuation and tokens like VeChain or VET, 0x or ZRX, as well as Zilliqa or ZIL, have recorded gains of almost 15 to 20%.
However, the recovery rally of BTC can have a tough time in scaling the failing channel hurdle, now being at $4,450, as the key exponential moving averages EMAs – 50, 100, as well as 200 – are still trending south in favor of the bears.
BTC could experience a short-term trend reversal
By the market capitalization, on the 27th of November, before the increase of 8%, Crypto Rand, which is a prominent crypto trader, stated that depending on the daily close of BTC, the asset could actually experience a short-term trend reversal.
The analyst said that keeping an eye on the daily close of BTC, as well as looking to print bullish hammer which could lead the reversal is essential.
Since then, the BTC price, together with its volume, rose substantially, bringing up the daily volume of the rest of the market capitalization from around $12 billion to $18 billion.
This Tuesday, Don Alt, who is a crypto technical analyst, echoed a similar sentiment, stating that BTC is actually the prime position to engage in a short-term positive movement.
He said that if it fails, he expects a very violent move down. And if it holds, they are probably going to stair step up.
Other tokens increased in value against other major cryptocurrencies
Now, BTC faces a huge resistance level in the range of $4,100 to $4,200. The breakout of the $4,150 mark could signal a full trend reversal for BTC after a few weeks of a downward movement. However, based on the time frame and the past performance of the asset in the last two weeks, a sudden breakout of large resistance levels on market is still a challenge for BTC.
Most of the small market capitalization tokens in the market have demonstrated fairly large gains against the U.S. dollar as the price of BTC demonstrated some momentum.
However, tokens are down on average from 30 to 50% against BTC and at that period in which the SEC is accelerating its investigation into dozens of ICO projects which are generally considered to be securities, the tokens present an extremely high-risk, as well as low-reward opportunity.
A few tokens, which include Zilliqa, which are anticipating the completion of some major network upgrades, as well as improvements in the upcoming weeks also increased in value against most of the large-scale cryptos.