Cryptos: Bitcoin holds $4,000, nears a buy zone, says analyst

The crypto rout has moderated on Wednesday, with all major coins all trading in the green ahead of Thanksgiving in the U.S.

Following a 10% plunge in the space of an hour late Tuesday, bitcoin

BTCUSD, +1.87%

 has rebounded on Wednesday, trading at $4,460.79, up 2.1% since Tuesday at 5 p.m. Eastern Time on the Kraken crypto exchange.

After logging six losing sessions over the previous seven, analyst Jani Ziedins of CrackedMarket said a short-term bottom may be around the corner and those brave enough could be in for some lucrative gains. “Look for the selling to continue over the next few days, but a bounce off of $3.5k-ish that returns to $5k is likely. While that doesn’t sound like a lot given the latest tumble, a bounce from $3.5k to $5k is a nearly 50% payout for just a few days of work,” he wrote.

“This is not for the faint of heart, but there will be nice rewards for those willing to jump aboard the inevitable bounce.”

Read: Bitcoin is imploding — here’s where bitcoin bulls and bears see it headed from here

Altcoin selloff steadies

Altcoins, which consist of all coins other than bitcoin, are mostly higher Wednesday. Ether,

ETHUSD, +2.78%

has regained 0.5% to $131.84, Litecoin

LTCUSD, +3.83%

is up 0.6% at $32.95, XRP,

XRPUSD, +1.06%

is higher by 0.3% to 43 cents and Bitcoin Cash

BCHUSD, +4.53%

 was underperforming, trading down 7.9% at $239.50.

The broad-based rally has added $5 billion to the total value of all cryptocurrencies, according to data from CoinMarketCap.

Bitcoin futures moved higher on Wednesday. The Cboe Global Markets December contract

XBTZ8, +3.43%

ended the session up 0.4% at $4,375 and the CME Group November contract

BTCX8, +3.30%

was up 3.5% at $4,420.

Read: Why bitcoin prices are staging a fresh collapse

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Aaron Hankin is a MarketWatch reporter in New York who covers cryptocurrency and financial markets.

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