Bitcoin (BTC) has had a slight but steady surge in price throughout today from $3,590 to $3,630. In general, it seems there is resistance around the $3,700 level since Jan. 10.
The $3,700 resistance level is solidly below $3,900 where CME Bitcoin futures traders likely took out short positions after the December futures contract expired. The January CME Bitcoin futures contract will expire on Jan. 25, and a drop in Bitcoin’s (BTC) price is leading up to this expiration. This is because short sellers often “bang the close,” where they manipulate Bitcoin (BTC) to drop right before a contract expiration to increase short-selling profits.
Other major cryptocurrencies are increasing today as well, fueling a $1 billion increase in the total crypto market cap. Bitcoin Cash (BCH) is up 1.4 percent, EOS is up 2.7 percent, Stellar (XLM) is up 0.7 percent, Tron (TRX) is up 1.4 percent, Cardano (ADA) is up 1 percent, IOTA is up 2.7 percent, and Dash is up 1.1 percent.
Not every major cryptocurrency is up today, with some major cryptocurrencies down less than 1 percent including Ripple (XRP), Ethereum (ETH), Litecoin (LTC), Bitcoin SV (BSV), Monero (XMR), and Dogecoin (DOGE).
Even though there is some price movement today, this is about as quiet as the cryptocurrency markets get. There is a lack of major news today, after a flurry of news earlier in the week regarding the delay of the Ethereum (ETH) Constantinople Hard Fork, and the Cryptopia exchange hack.
Bear markets are often defined by long periods of stability punctuated by rapid price movements. For example, from September through early November, the price of Bitcoin (BTC) was stable just above $6,000. This resulted in many experts and analysts saying that $6,000 was a true bottom. Then Bitcoin (BTC) fell all the way to $3,100 in mid-December.
Bitcoin (BTC) has been trading in the $3,500-$4,200 range since Dec. 20, and the current market seems similar to the market from September through early November, except with lower cryptocurrency prices. Certainly, the crypto space is closer to a bottom now, but there is no way to know for sure if this is the bottom yet. Essentially, the bottom is something that can be called in hindsight once a persistent long term crypto rally starts.