This week, the valuation of the crypto market increased by $29 billion from $100 billion to $129 billion.
Within a five-day span, led by the sudden increase in the Bitcoin price, the crypto market experienced a surge in its valuation by nearly 30 percent.
Following the initial rally of Bitcoin (BTC) to $4,000, many technical analysts expressed concerns toward the sustainability of the recently found momentum of the crypto market, as Bitcoin started to retrace.
Can Crypto Market Sustain Momentum?
A cryptocurrency trader with the online alias “The Crypto Dog” said after the initial corrective rally of Bitcoin that the price trend of the asset has become poor with an immediate pullback to $3,700.
The trader said that if the dominant cryptocurrency struggles to rebound from $3,635 and resistance levels below it, the corrective rally of the crypto market on December 19 may reverse in the short-term.
“I’m astounded with how terrible BTC looks after just two hours. It could not have become more rekt in a shorter amount of time,” noted the trader.
Hsaka, a cryptocurrency technical analyst, said that Bitcoin already dropped to its initial resistance zone and is at risk of falling to the $3,500 region in the days to come.
The analyst said:
I was out of all my longs yesterday once we hit the target, missed out on today’s move. Bitcoin flipped the resistance zone as support and commenced another leg up, sweeping the 3840 stops. Looks to me like we’ll retrace back to the initial resistance zone.
To recover from one of the largest sell-offs in recent years,