[ad_1]
Bitcoin fell below $ 3,500 as $ 5 billion was wiped out of the encrypted market and major digital assets such as Ethereum fell 6% against the US 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 11th.
Expected Bitcoin weakness
On January 12, before 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 January 12.
At the moment, the trader he wrote:
Some thoughts. The first wick below the low range led to a high blow. The second (the current one) failed to reach as high as now. Sign of weakness in my opinion.
Since then, the price of BTC has dropped from $ 3,700 to $ 3,476, up six percent.
One of the main problems in cryptographic market performance in the last 48 hours is the low volume of daily exchanges of most cryptographic resources, including Bitcoin and Ethereum.
The volume of Crypto is declining, the Bitcoins are registered to less than $ 3,000? https://t.co/vjNgUxYCiL
– CCN.com (@CryptoCoinsNews) January 13, 2019
A sell-off during a period when a market is showing a low volume proves a free fall without significant sales pressure. Lack of resistance can leave the market vulnerable to a prolonged decline in the short term.
Josh Rager, a cryptocurrency investor, has suggested that if the volume of the cryptocurrency market does not recover in the coming days, a fall in the price of BTC in the lower region of $ 3000 is highly likely given that the solid purchasing walls have established below $ 3000 level support on crypto-fiat exchanges.
"As the volume continues to go down slowly, Bitcoin could see more side steps This could last for days or weeks until a decrease in buyers, who currently hold the market, at these levels.Beautiful support under $ 3000 with many buyers waiting there, "he explained.
As Bitcoin struggled to show strength in a relatively low price range of $ 3,500 to $ 3,700, other major cryptographic assets such as Ethereum, Bitcoin Cash and EOS have seen a decline of 8%, 7.5% and 7% compared to USD, respectively.
Even TRON, which posted large gains against Bitcoin in the last week due to some of the progress made in integrating a token into the BitTorrent protocol, recorded a double-digit drop during the day.
What investors can expect
The cryptocurrency market could recover in a lower price range, as large buying walls prevent bears from pushing the market below key support levels.
However, in the coming days, wild volatility is generally expected, and based on the performance of dominant cryptocurrencies, most digital assets in the global market may become vulnerable to short-term declines.
Overall, based on the performance of BTC over the last three days and the decline in the volume of the cryptocurrency trading market, the asset class shows weakness in many areas.
Shutterstock foreground image. Price charts from TradingView.
[ad_2]
Source link
