Bitcoin returns to US $ 4 thousand, will it last?

After falling below US $ 4,200, the price of Bitcoin (BTC) has repeatedly tried to stay above the US $ 4,000 limit but failed. However, thanks to encouragement from traders for the past 24 hours, BTC prices managed to break above the psychological limit after experiencing a 4 percent rally.

The increase in BTC prices followed the daily trading volume of US $ 11 billion, the highest 24-hour volume since April last year, when BTC prices were at US $ 8 thousand.

Meanwhile, the prices of Ethereum (ETH), Ripple (XRP), Litecoin (LTC) and Bitcoin Cash (BCH) all rallied with BTC, each increasing between 5 and 18 percent and adding US $ 6 billion to crypto market capitalization whole.

BTC trading volume reaching its highest point in the 12-month period is considered a sign that investors are still engrossed in playing with Bitcoin. Even though it was constantly beaten "winter" crypto which weakened the crypto sector, Bitcoin remained the number one crypto based on market capitalization.

For a long time, the trading volume of BTC correlated with BTC prices, but when there was a "civil war" of Bitcoin Cash which made the crypto market chaotic in November, the volume of BTC persisted despite the price of a landslide.

Although the price of Bitcoin is slowly increasing, its market dominance, based on total crypto market capitalization, has dropped and is at a new low in 2019 at 50.6 percent. Meanwhile, altcoins gained increasingly market dominance.

The latest technical analysis shows the trend of long-term demand for Bitcoin is declining, which means selling pressure can increase. Bloomberg reported that the MACD (Moving Average Convergence Divergence) indicator continued to decline since mid-February.

The Bitcoin backers who are bullish are launching a variety of bold predictions in the past few weeks, and said the price of Bitcoin could continue to increase and the crypto winter would end soon. Since the beginning of February where the price is at US $ 3,400, BTC has increased by 11 percent, stopping the trend of the past six months.

However, Bloomberg analyst Mike McGlone said the crypto industry would actually lead to lower prices. This month's conditions are similar to November, just before the crypto market plummeted. The prices of various coins are in a tight range, with some coins having a bear market rally even if only temporarily, explained McGlone.

On the other hand, in an interview with CNBC, Tom Lee, a supporter of Bitcoin who made various bullish predictions, said 2019 was a strong year for Bitcoin. Lee highlighted a number of large institutions such as JP Morgan, Facebook, Bakkt and Fidelity who all target the crypto sector, which shows that the industry will be even more lucrative.