Bitcoin (BTC), hounded by recent setbacks fanned by widespread negativity and waning investor confidence, inched towards the middle of $3,400-$3,500 region.
Decent rebound needed
The world’s benchmark in the digital currency market, bitcoin is trading at $3,445, rallying around 1.5 percent on a day-over-day basis. While the crypto is making resistance to further slide south, a decent rebound at this stage looks premature.
Based on statistical figures disclosed by New York-headquartered OTC trading hub Genesis Global Trading, the volume of loans in cryptocurrency breached the $1B level in the final quarter of 2018, indicating a 200-percent rally at the close of the third quarter.
Finance analysts at Genesis Global Trading have likewise stressed the surge in interest in connection with the time when Bitcoin hit crucial support.
In a statement, Genesis Global Trading said that: “On Nov. 14, the price of bitcoin soared 16 percent in a single day, which jumpstarted a period of increased loan originations as short-sellers piled on with unprecedented size.”
The over-the-counter trading portal further commented that many long-short hedge funds saw breaching the $6,000 price mark as an accelerator through $5,000 and into the $4,000 barrier.
At the time of this posting, bitcoin remains the most popular investment commodity in GGT’s corporate inventory with a 75 percent stake.
Above critical support
Meanwhile, BTC/USD remains above the critical support ground of $3,400. Traders project a selloff that could stretch towards the next boundary $3,200 followed by $3,127 – which is the lowest mark of 2018 – if it makes a clearance.
On the upside, analysts cling to a maintainable shift towards the $3,500 level to hinge on an extended recovery with the next pivot pointed to the $3,600-$3.665 range.
Will bitcoin cling to a safe zone before plunging further? What’s your take?