On February 8, the crypto market experienced a strong $10 billion recovery from $111 billion to $121 billion, breaking out of a three-week stalemate.
With an overnight price movement, the crypto market nearly fully recovered to January levels at around $130 billion.
Several major crypto assets in the likes of Litecoin (LTC) and EOS (EOS) recorded gains in the 15 to 20 percent range against the U.S. dollar.
Bitcoin surged by 11 percent from $3,337 to $3,711. Although the dominant cryptocurrency slightly retraced to $3,616, it has shown strong momentum in the past 24 hours.
Traders Foresee Bullish Movement For Bitcoin and Crypto?
A properly established bottom for Bitcoin is not in just yet. The asset is still vulnerable to a short-term drop below the $3,000 support level.
Speaking to MarketWatch, Think Markets UK chief market analyst Naeem Aslam said:
“For the past few weeks, we have not seen any significant movement in the bitcoin price. We are stuck in a price range of $3,183 (17 December low) to $4,234 (Dec. 24 high), as long as we are not breaking out of this range, there is nothing new.”
Throughout February, many analysts have emphasized that Bitcoin has to recover to the $4,000 to $5,000 range to confirm a breakout above a key resistance level.
Chart via TradingView
If the asset remains in the tight $3,500 to $4,000 range, there exists a low probability of BTC initiating a rally back to its all-time high at $20,000.
Given the uncertainty around the short-term performance of BTC and whether it could break into the mid-$4,000 region,