Bitcoin dropped back below $4,000 overnight, dampening the enthusiasm many traders had built up that it was on its way back up to $5,000, at least for the short term. The cryptocurrency has been ranging in the $3,000-$4,100 range for over a month now, and is starting to show similar patterns to what we saw in the summer when the so-called ‘Bart’ price action was often seen – sharp increases and drops associated with ‘bot’ trading.
Sacré Bart… $BTC pic.twitter.com/LiwHdqo3Vl
— 2LaJungle (@2LaJungle) January 10, 2019
Bitcoin’s overnight drop of $265 equated to a 6% fall and had a knock-on effect on the rest of the market, with most coins posting double-digit losses.
Tron Continues to Swim Upstream
Tron was the only coin to buck the negative trend, continuing its meteoric rise in the run-up to its niTROn-2019 Tron Summit in San Francisco. It has been moving sharply since December 2, enjoying a 60% increase to its current price of $0.03, and with a week left until the conference starts there could be room for more gains. There is every expectation however that Tron is following in the footsteps of Ripple, which consistently sees huge price jumps in the run-up to its annual Swell conference (181% in 2018) leading to a drop off before the event. If Tron is following the Ripple lead then we could well have seen the best of the price action. Tron fans made the most of its ascension up the charts, potentially unaware of the historical performance of coins that have events as catalysts.
Toc toc toc pic.twitter.com/7bSHDBmlKj
— ReM-BrAk (@remy37390) January 9, 2019
Big Caps Start to Thaw
While Tron has been leading the way, some large-cap coins such as Cardano and Litecoin had been enjoying mini-resurgences, based off technical patterns as opposed to fundamental improvements. Investors will hope this Bitcoin drop is only temporary and they can continue in their upward trajectory. If past patterns are anything to go by, there is every chance Bitcoin will ‘Bart’ back up again to over $4,000, and, as we saw in the summer, there is no knowing how long this kind of price action can continue. Best bring some sandwiches… this could be a long wait.
