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It has proven to be a tough year for Bitcoin, and according to a technical analyst, it’s going to take “months to repair” before another rally takes place.
Bitcoin Could Use Some TLC
Bitcoin is currently trading at $6,571, according to CoinMarketCap. Its market cap is worth $113.6 billion. Yet, it’s a far cry from its mid-December figures. At its height, it was trading at nearly $20,000 and had a market cap valued at $327.4 billion. Fast forward to October and the market has taken a decidedly different turn.
For several months, Bitcoin has remained within the $6,200 and $6,800 range. Throughout 2018, though, it hasn’t gone any higher than $8,000. With the number one crypto asset not showing signs of improvement, one technical analyst thinks it’ll take months to repair, reports MarketWatch.
Rob Sluymer, technical analyst at Fundstrat Global Advisors, stated:
Given the technical damage that has developed in 2018, we expect most cryptocurrencies will likely require months of repair before a new bullish trend can develop. This is consistent with post-bear-market behavior that has developed in other asset classes following bear markets.
In Sluymer’s opinion, a turnaround in Bitcoin’s price will be when it reaches September’s high of $7,400. At the moment, though, it remains out of reach of that figure. That’s not to say it won’t reach new highs again. Given increasing institutional interest, it’s likely that this will help to boost figures across the board.
XRP Rises to New Heights
Altcoin XRP has also shown it has what it takes to become a contender, particularly when it comes to taking second place.
Last month, the crypto asset jumped 40 percent in 24 hours following the announcement from Ripple that it would be launching a crypto-focused product “in a month or so.” At one stage, it surpassed Ethereum by taking second place. This pushed its price to over $0.65. The last time it took second place was back in December when XRP rose 40 percent in a 24-hour period.
It has since been revealed that Ripple’s product, xRapid, has gone live with three financial firms.
At the time of writing, XRP is valued at $0.55. Notably, the launch of its product doesn’t appear to have had much effect on its price. However, its market cap remains relatively close to Ether’s. Ether is valued at $23.4 billion and XRP is worth $22.2 billion.
Even though market prices are not what they were last year, what is notable is the fact that industry prices appear to be more stable. This, in itself, should give investors more confidence when trading in them.
Do you think there is more stability in market prices? Do you think it’s still volatile? Let us know in the comments below.
Images courtesy of Shutterstock.