Bitcoin and other cryptocurrencies rallied Monday, but some traders still see the largest crypto as vulnerable to more declines, particularly as bitcoin continues laboring below the important $4,000 level. Even with Monday’s upside, bitcoin was barely residing above $3,700.
That after the major crypto shed about 80% of its value in 2018. Among the issues plaguing bitcoin last year were the ongoing unwillingness of U.S. regulators to approve bitcoin-related exchange traded funds as well as data indicating that mainstream acceptance and adoption of the digital currency are declining.
“The weakness in the short-term price trend of BTC led the market to demonstrate volatility on the downside. More than $5 billion was wiped out of the crypto market and major assets like Ethereum recorded a six percent drop,” reports CCN.
Improvements to the blockchain and other crypto infrastructure as well as increased adoption of the asset class by high-level investors could bolster digital assets.
What’s Next for Cryptocurrencies
Heading into 2019, the outlook for bitcoin and rival cryptocurrencies remains murky due in large part to increased regulatory efforts and lack of mainstream adoption.
“Generally, both analysts and traders expect Bitcoin to fall to the low $3,000 region in the days to come. Some have suggested that a strong buy wall below the $3,000 mark may allow the dominant cryptocurrency to recover, implying that a 10 percent fall remains a possibility,” according to CCN.