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In the last 24 hours, the prices of both Bitcoin (BTC) and Ethereum (ETH) have decreased by more than 3% compared to the US dollar.
The cryptocurrency market recorded a sharp decline of $ 4 billion in its valuation of around 3.5 percent. While the major cryptocurrencies have struggled to show signs of a possible corrective rally, small digital assets with market capitalization and ERC20 tokens have plummeted by more than 10% on average.
Is the bottom far from here?
On December 11th, the price of Bitcoin fell from $ 3.587 to $ 3.355. From its daily peak, the dominant cryptocurrency is actually down 6%.
A disturbing signal from the short-term price trend of BTC is its low daily volume. In a sharp contraction or a fall of 5-10%, an asset tends to see an increase in daily volume as sales volume intensifies.
When the volume of activity does not increase but still decreases in value, it suggests that the business is in free fall without a high sales pressure and with relatively small sales orders from bears on the market .
The price of Ethereum recorded a trend similar to that of Bitcoin as the price decreased by about the same amount as BTC with a decrease in daily volume. In the last week, the volume of ETH dropped from $ 2 billion to $ 1.6 billion, nearly 20%.
Several traders have set up a fund for Bitcoin this week, seeing the strong recovery of Bitcoin from the lower region of $ 3000 with the support level of $ 3000 intact.
However, as reported by CCN on 10 December, if the BTC fails to exceed the resistance levels of more than $ 3,700 and $ 4,000, an adequate fund can not be confirmed. As of Tuesday, BTC remains in a narrow range between $ 3,000 to $ 3,500.
Cryptocurrency technical analyst with an online "Hsaka" alias He said:
"Rejected from previous support: It appears that it is forming a downtrend channel on LTFs (ie a way to display a downward trend.) I often use channels for confluence with horizontal levels (both black horizontal rejections were also at the border of channel). "
Regarding the short-term trend of ETH, Edward Morra, acknowledged digital asset trader, has increased the possibility that ETH falls to $ 55 with a 35% decline.
he He said:
"If the bulls of the ETH lose this support and the minimum set at $ 83, it's practically empty until the next significant support around $ 55- $ 45, another 35% disadvantage from here."
What will happen to the chips if ETH falls another 35%?
Already, according to ATHCoinIndex, most of the tokens have already dropped by almost 99 percent compared to historical highs and are still at risk of falling further against the US dollar.
With the increase in regulatory pressure from the US Securities and Exchange Commission (SEC) and the decline in public confidence in the initial market for coin supply (ICO), tokens could continue to lose value from its already low price range, which could lead some to lose all their short-term value.
Shutterstock foreground image. TradingView Charts.
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