Over the last 24 hours, the Bitcoin price has experienced a seven percent recovery from $3,210 to $3,433, avoiding a further drop below the $3,000 support level.
Many traders expected Bitcoin (BTC) to rebound from the $3,000 to $3,300 range because the $3,000 support level has shown strength throughout the past two weeks.
Ethereum (ETH) recorded a 15 percent increase from its daily low and ERC20 tokens such as Quarkchain, OmiseGo, and 0x demonstrated gains in the range of 5 to 15 percent, due to the integration of tokens by Coinbase.
The Coinbase team said on December 7:
“We are exploring the addition of many new assets beyond ERC20 tokens on a jurisdiction-by-jurisdiction basis.”
Where is Bitcoin Heading
According to Collin Crypto, a Bitcoin trader and a venture capital investor in the cryptocurrency market, Bitcoin shorts achieved an all-time high on Bitfinex, one of the largest digital asset trading platforms in the world that allow margin trading.
It is possible, given the aggressive short contracts filed on major exchanges, that shorts were squeezed out and intensified the corrective rally of the dominant cryptocurrency.
As such, it is too early to confirm a trend reversal, especially since the asset has not been able to test important resistance levels in the high $3,000 region. If the volume of the asset fails to hold up, another large correction in a low price range could materialize.
One analyst said:
“Something to keep an eye out for before you start popping bottles. The previous two times we have seen a strong green candle,