Crypto Market Begins to Fall Rapidly Again: Bitcoin Below $3,500
14 Januar 2019 - 11:51AM
ADVFN Crypto NewsWire
Bitcoin fell below $3,500 as $5 billion was wiped out of the
crypto market, and major digital assets like Ethereum recorded a
six percent drop against the U.S. dollar.
The 4.8 percent drop in the combined valuation of all
cryptocurrencies in the global market comes after a strong sell-off
on January 11.
Bitcoin Weakness Expected
On January 12, prior to the three percent drop in the Bitcoin price, a cryptocurrency trader with an online
alias “Hsaka” said that Bitcoin was showing a sign of weakness
based on its performance from January 11 to 12.
At the time, the trader wrote:
Some thoughts. The first wick below the range low led to a tap
of the range high. The second one (this current one) has failed to
reach that high as of now. Sign of weakness in my opinion.
Since then, the price of BTC declined from over $3,700 to
$3,476, by six percent.
One major issue in the performance of the crypto market in the
last 48 hours is the low daily trading volume of most crypto assets
including Bitcoin and Ethereum.
A sell-off during a period in which a market is demonstrating a
low volume demonstrates a free fall without significant sell
pressure. The lack of resistance may leave the market vulnerable to
an extended drop in the short-term.
Josh Rager, a cryptocurrency investor, suggested that if the
volume of the cryptocurrency market fails to recover in the
upcoming days, a drop in the price of BTC to the low $3,000 region
is highly likely given that solid buy walls have established below
the $3,000 support level on crypto-to-fiat exchanges.
“As the volume continues to slowly descend Bitcoin could see
more sideways ranging This could last for days or weeks until a
decrease in buyers, currently holding up the market, at these
levels. Nice support below $3,000 with lots of buyers waiting
there,” he explained.
As Bitcoin struggled to show strength in a relatively low price
range from $3,500 to $3,700, other major crypto assets in the likes
of Ethereum, Bitcoin Cash, and EOS recorded an 8 percent, 7.5
percent, and 7 percent drop against USD, respectively.
Even TRON, which experienced large gains against
Bitcoin over the past week due to some of the progress its
foundation made in integrating a token into the BitTorrent
protocol, experienced a double-digit fall on the day.
What Investors Can Expect
The cryptocurrency market may recover in a lower price range as
large buy walls prevent bears from pushing the market below key
support levels.
However, in the next few days, wild volatility is generally
expected, and based on the performance of the dominant
cryptocurrencies, the majority of digital assets in the global
market could become vulnerable to short-term drops.
Overall, based on the performance of BTC throughout the past
three days and the declining volume of the cryptocurrency exchange
market, the asset class is showing weakness in many areas.
Source:
CCN
Bitcoin (COIN:BTCUSD)
Historical Stock Chart
Von Mär 2024 bis Apr 2024
Bitcoin (COIN:BTCUSD)
Historical Stock Chart
Von Apr 2023 bis Apr 2024