Bitcoin Marks Its Best Week Since May: Crypto Weekly Report

It appears that China is waking up and this did to the market what Bakkt’s futures failed to. President Xi Jinping urged for further adoption of blockchain-based technology and his statement might have been one of the reasons for Bitcoin’s 40% surge in the past few days.

As such, Bitcoin saw its best week since May. It’s not the first time that statements from China affect market volatility and the increase in prices is a fundamental reaction that has left most of the technical analysts surprised. It also saw a lot of short positions liquidated, especially those who were counting on a correction to $6,000. Now the market is pulling back and trying to figure out whether the trend is strong enough to keep going up or if that’s just a bull trap.

The timing of the news from China came as the market had entered fairly bearish conditions after the price lost support around $8,000. However, we also pointed out last week that Bitcoin’s sentiment usually changes in a moment. Thus, just before the end of the year, the market recalculates and marks a successful 2019 in terms of Bitcoin’s price. However, the regulatory framework is still not good enough, while the existing infrastructure still fails to enable Bitcoin’s integration in the traditional economy.

The war between Bitcoin and banks is just beginning and it will definitely take some time to see the liquidity. Banks are still having difficulties and they don’t allow companies to operate in the field because of the lack of sufficient clarity on the rules. Despite previous estimates that 2019 would be a year of regulations, it seems to have been just the opening shot in terms of cryptocurrency financial legislation.

Altcoins are also rising up and are able to maintain their value with regard to bitcoin. Some of them have even shown very impressive performance. Chinese altcoins such as NEO and TRX were especially prominent. Despite this, Bitcoin’s dominance wasn’t affected and it even increased after the sharp increase in the prices.

In conclusion, as we approach the end of the last quarter of 2019, Bitcoin continues to be volatile and unexpected as usually. We may certainly see another leap and an attempt to break the existing records or it could plummet within days. This is definitive proof that there’s never a boring day on the cryptocurrency market.

Market Data

Market Cap: $251.4B

24-Hour Volume: $95.1M

BTC Dominance: 67.5%

BTC: $9,435

ETH: $187

XRP: $0.30

BTC Shorts (BFX): 6.3K BTC

BTC Longs (BFX): 26K BTC

Market-Update-53-min

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