Bitcoin rose 13% hit $3700 “Christmas Rose” effect is approaching or bitcoin is still weak?

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Today morning, bitcoin quickly strengthened, leading to more mainstream currency ushered in a wave of two digit broad.

The Bitstamp platform offers that bitcoin highest exceeded $3700, $3280 a day low of $464, the biggest gain in 13% days; Coindesk said today for nearly three weeks of its best performance. At present, bitcoin prices remain above $3500 in the maintenance of stability.

(source: Coinmarketcap 10:30 on December 18th)

At the same time this morning, the market value of the top thirty currencies rose across the board, with an average increase of up to 11.35%. Among them, EOS rose more than 23%, back above $90. CoinMarketCap data show that EOS’s market value rose to $2 billion 170 million, ranking rose to fourth. This is since the birth of the EOS, the highest market capitalization ranking.

In addition, bitcoin futures today also rose over 11%, to close at $3500 above the mark:

CME bitcoin BTC January futures contract closed up $385, or about 12.24%, to $3530 in December 14th to $3145 a month contract closed at the lowest; CBOE bitcoin XBT January futures contract closed up $350, up about 11.11%, to $3500 in December 14th to $3150 a month contract closed at the lowest.

On Friday, part of the platform bitcoin intraday trading below $3200, hit a new low since September 2017, within a month the price being cut.

“Christmas Rose” effect is approaching or below $3000 is still in the test?

For bitcoin, yesterday is a special day. December 17, 2018 is the price of bitcoin peaked 1st anniversary anniversary. On the same day last year, according to Bitstamp data, bitcoin rose to $19664 on the historical peak, and today bitcoin broke the recent “dead” market, out of a wave of strong rebound.

At the same time, Forbes said bitcoin led the market rose, for the entire digital currency market day increased by $13 billion, to $115 billion, could herald a “Christmas rally” has come to coin ring.

Shallot previously mentioned in the article, from the historical data since 2013 the price of bitcoin monthly performance summary, bitcoin rose in the first quarter of the worst performance, while the increase in the fourth quarter of the strongest.

For bitcoin at the end of the “inertia” of the phenomenon of rising market will be called “Santa Clause Rally” (Christmas Rose) or ‘December effect’ (December effect).

The market has not yet found a reasonable explanation for this phenomenon, but some analysts believe that bitcoin at the end of the rise was largely expected due to additional capital inflows in the new year, and for accounting and tax reasons, there will be additional part of the transaction must be completed before the end of the year will also become one of the factors to boost the market activity. Furthermore, there is the view that the part of the fund manager will before the end of the year to intervene in the market through the “packaging” its portfolio of annual performance, one of the ways to push up the price of bitcoin is the “fraud”.

In addition, the Wall Street informative article said, from the trading point of view, the recent rebound in bitcoin is also a certain technology foundation. CFTC bitcoin futures positions weekly show, up to 12 months 11 week, speculators hold CBOE bitcoin futures contracts net short positions to reduce 63, 913 contracts, and 2017 years 12 months since the creation of the on-line trading week minimum (i.e. the lowest), on behalf of the price up there kinetic energy.

At present, stock market comparison chart below, the red represents the empty, Green said that. Among them, BitMex long, accounted for 61.45%, while Bitfinex and OKex exchange, bears a slight advantage.

(source: blockchaintrend, 11:30 on December 18th)

However, the market is also bearish view. Some analysts believe that even if bitcoin rebound quickly within 24 hours, the price is still very weak.

Daily FX analyst Nick Cawley told the that the recent wave of strength that quickly pulled up to $150 (the market) lack of sellers, rather than foreign markets have a lot of interest.

He added: “bitcoin is still weak, there are still 9 months to 2017 year low of $2970 in a new test, if this level can not stabilize the support level of the next 2017 years, a 7 month low of $1760 in the next few weeks will bring pressure.” senior analyst Clement Thibault said the bitcoin world bubble may eventually explode. Moreover, Thibault does not believe that bitcoin will reach a record high in 2019.

Oil analysts believe that the overnight wave of rapid rebound after the short-term market sentiment turned more, especially in the current price is still above 3600 operating conditions, 3600-3520 regional stepped back in place to focus on, not broken can be further stabilized more than a single chase into the target point 3800, 4000. If the 3520 was below the market fast, weak shocks will restart.

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