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The market capitalization of the world's leading cryptocurrency has set its new annual minimum.
Monday's bitcoin continued its downtrend and its rating fell to a new bearish low of $ 92.53 billion. At the same time, the price of the digital currency fell to an average of $ 5.322, according to aggregate data available on CoinMarketCap.com. Overall, the bearish action has intensified the possibility that Bitcoin will establish a double minimum at any time this year.
As reported on CCN last week, the bifurcation of Bitcoin Cash proved to be the main catalyst behind the market downturn. Bitcoin is a resource that is more locked into unwanted negativity, especially when the head of a large mining company has decided to reallocate its Bitcoin hash power to support Bitcoin ABC, one of Bitcoin Cash's blockcoin blocks. While the trend should survive shortly, it left a big stain on the face of the entire cryptography market, which now appears more unstable for potential investors than ever before.
Analysts now expect an extended downside run for Bitcoin. Leading cryptography experts Willy Woo and Crypto Rand believe the digital currency could fall further to the $ 4,500-5,000 range. The forecast through the Bitcoin NVT ratio, which divides the digital currency market capitalization by its average daily volume, is also lower. Play in a bitcoin narrative that doubles its value in the near future.
A different analysis of the Bitcoin bull Tom Lee predicts that Bitcoin will reach $ 15,000 by the end of this year, defining in the short term the side effects of Bitcoin Cash. However, the founder of Fundstrat has moved away from his forecast of $ 25,000 made at the beginning of this year, indicating that it will change every time faced with new fundamentals.
Technical perspectives
The latest price action does not come as a surprise to the technical perspectives of CCN. He had predicted that the price of Bitcoin would try to repeat its previous minimum – or the lower trend line of the current fall wedge formation to the maximum. There is a strong probability that bulls will experience a strong upward correction, giving adequate opportunities for the level indicated in the Fibonacci retracement chart in the graph below.
A further break from here could lead the Bitcoin market towards the bearish targets of eminent analysts – as mentioned above. Therefore, $ 5,000 serves as a potential main downside target if the price breaks below the lower trend line of declining wedge formation.
Shutterstock foreground image. TradingView Charts.
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