The cryptocurrency has jumped by 0.32 percent in 24 hours and reached a high of $4,091.06 on Sunday, January 6. On Tuesday, it hit $4,109.02, and the lowest it has dropped since Sunday is $3,997.21, according to CoinMarketCap. The January performance marks a decidedly more upbeat return for Bitcoin, which has fallen around 80 percent from its record high in December 2017.
The fluctuating price per token has been the norm for the cryptocurrency, which has fallen nearly 50 percent in the last four months.
Despite the upward turn in the value of Bitcoin, analysts are doubtful 2019 will be the year the cryptocurrency returns to the high of 2017.
Clement Thibault, senior analyst at Investing.com told Express.co.uk: “There’s little chance of any cryptocurrency reaching a new all-time high in 2019.
“The burst bubble that once brought Bitcoin to within reach of $20,000 and Ethereum to nearly $1500 is a distant memory as Bitcoin hovers around $3,800 while Ethereal trades around $150.
“It’s simply unreasonable to expect such a massive turnaround in such a short period of time.”
But Mr Thibault added: “Even though crypto prices are trending downward, crypto aficionados have not given up on the asset class. There are still plenty of development teams working to build the necessary infrastructure for cryptocurrencies, which will allow Bitcoin in particular, to thrive.
“A new all-time high for cryptocurrencies will either occur two-three years from now, when improved technology can deliver on mainstream adoption and daily usability, or when enough new money enters the arena and spurs a new mania for cryptocurrencies.”
Nicholas Cawley, Daily FX analyst, said the cryptocurrency could drop further before Bitcoin pushes towards the $7 to $8,000 range.
He told Express.co.uk: “While BTC dropped over 80 percent last year, here may still be a further washout before the price stabilises.
“On the charts the September 2017 swing low at $2,970 and the July 2017 low at $1,790 look realistic targets.
“If these targets are hit I would expect a lot of ‘loose holders’ to have finally exited Bitcoin, leaving the way for BTC to press higher and back towards the $7,000 to $8,000 range.”
Mr Cawley said a cull of other alt-coins could prompt interest in Bitcoin and traders still interested in the crypto market, investing money in the “market leader.”
“Bitcoin will remain the market no.1 next year and its market dominance will grow from its current 52 percent to in excess of 65 or maybe more.”
Other analysts have looked at Bitcoin’s daily sentiment scores, which looks at the conversation over Twitter in the last 24 hours.
It has been positive throughout 2019 so far and this could suggest further gains for Bitcoin.
Joshua Frank, cofounder of cryptocurrency analytics platform TheTIE.io, said: “We saw that daily sentiment peaked on January 4th and while it has fallen slightly, it has remained positive.
“Given the historic correlation between bitcoin sentiment and price, this would suggest further gains for the cryptocurrency.”