Daily Market Analysis: Mini Bitcoin (BTC) Rally Stomped Out; Litecoin (LTC) and Tron (TRX) Rally

January 8, 2019 / by Zachary Mashiach

Things got a tad exciting today during the morning hours, Eastern time, with the price of Bitcoin (BTC) steadily surging from $3,975 to $4,112 on Bitstamp, which is the highest Bitcoin price of 2019 so far.

It seemed like perhaps Bitcoin was finally leaving that key resistance level of $3,900 in the dust, but the mild euphoria did not last for long. Bitcoin came back down to Earth, and is oscillating close to the $4,000 level as of this writing at 6 p.m. EST.

It looks like Bitcoin cannot escape the gravity of the $3,900 level, which is possibly the level where Chicago Mercantile Exchange (CME) Bitcoin futures traders placed their short bets.

That’s because $3,900 was the price of Bitcoin after the December 2018 contract expired. Certainly the $3,900 level is a key point of interest this month. If Bitcoin crosses back below $3,900 a more significant drop could follow. If Bitcoin persists above $3,900 and rallies beyond $4,000, then perhaps this month could be a rally after all.

The total cryptocurrency market cap surged from $134.5 billion to $138.5 billion during today’s mini rally and currently sits near $136 billion. Therefore, today is a slight up day for the crypto market. Litecoin (LTC) and Tron (TRX) lead the way with 4 percent and 12 percent increases, respectively. EOS is the only other major cryptocurrency that is up today with a one percent increase.

In the past month, Litecoin has rallied from $23 to $40 (74 percent), and Tron (TRX) has rallied from 1.27 cents to 2.65 cents (109 percent). During the same period of time, Bitcoin (BTC) has rallied from $3,120 to $4,000 (28 percent).

Major cryptocurrencies that have declined today include Ethereum (ETH), Bitcoin Cash (BCH), Dogecoin (DOGE), and Ripple (XRP) with losses of less than one percent. Bitcoin SV (BSV), IOTA, and Dash are down two percent.

Ethereum Classic (ETC) declined 10 percent yesterday on the news that a 51 percent attack occurred. Despite more information today revealing that 15 separate attacks happened, and $1.1 million of double spends have occurred, Ethereum Classic (ETC) has been quite stable. The Ethereum Classic (ETC) debacle may be dragging down Ethereum (ETH) slightly as well since the 51 percent attacks have sparked debates in both communities over whether ASIC miners should be banned.

Overall, today was a bit underwhelming and perhaps depressing since the attempt at a Bitcoin (BTC) rally ended up getting squashed. The Dow Jones Industrial Average (DJIA) going up 1,000 points in the past 4 days is possibly making it harder for Bitcoin (BTC) to rally. If the stock market continues to show signs of strength, stock traders will not use Bitcoin (BTC) as a safe haven asset. The DJIA is 2,000 points above lows set on Christmas Eve, overriding many economic parameters and defying analysis that perhaps suggested a big stock crash was imminent.