Bitcoin Stabilizes at $3,550 as Analyst Warns It May Still Retest Recent Lows

Bitcoin, the flagship cryptocurrency, has seemingly stabilized around the $3,550 mark as it has been trading around it after it fell from slightly over $4,000 on January 10. The cryptocurrency, despite its relatively subdued performance, held on after the Cboe pulled its Bitcoin ETF proposal.

According to CryptoCompare data BTC is currently trading at $3,560 after falling about 1% in the last 24-hour period. In the last few hours the cryptocurrency touched the $3,600 mark but soon came back to its stable point. Its market cap is at $62.2 billion.

Bitcoin's price performance in the last 30 days

In the last 30 days, the cryptocurrency has seen a $4,100 high but after successive sell-offs it seemingly entered a range between the $3,500 and $3,800 marks. Data from BuyBitcoinWorldwide shows the cryptocurrency’s 30-day volatility index has dropped 1.5% this month.

Speaking to MarketWatch David Thomas, director and co-founder of cryptocurrency brokerage firm Global Block, stated that BTC may still retest its low seen in December of last year. Thomas was quoted as saying:

An inability of BTC to remain above the 21-day moving average means that a sustained break of the $3,500 level remains high which would then put the December lows of $3,100 firmly back on the map and give the bears back control.

The analyst added that while overall the market is positive on BTC for the medium and long term, there “still seems to be a widely held view that BTC is not out of the woods yet and a retest of the lows is on the cards.”

Notably throughout the bear market BTC has seen various developments, that some believe would justify a recovery. As covered its layer-two scaling solution, the Lighting Network (LN), surpassed the 500 BTC capacity, while SegWit adoption has kept on growing.

Moreover, Nasdaq’s vice president of communications, Joseph Christinat, has confirmed that the world’s second-largest exchange by market cap will be launching bitcoin futures in the first half of this year. Bakkt has also started hiring for its futures exchange.

Other top altcoins are also down in the last 24 hours. Ether’s price has seemingly been accompanying that of bitcoin, as it’s down by about 1% in said period, trading at $116.2. XRP dropped 1.3% to $0.31.

EOS, TRON, Zcash, and Bitcoin Cash have all dropped between 1.3% and 1.8% in said period, with BCH dropping the most to $126.7. Litecoin is notably up 0.16%, as it’s trading at $32.3.