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On December 14th, following a fairly large sale from the $ 3,400 region, the price of Bitcoin fell to a new annual low of $ 3,200.
With the decrease in the value of Bitcoin (BTC), the other main cryptocurrencies, including Ethereum (ETH), Stellar (XLM) and Bitcoin Cash (BCH), suffered huge losses compared to the US dollar, with a fall in the value of the US dollar. BC of over 11%.
Within a seven-day period, Bitcoin's cash price fell from $ 116 to $ 89 by over 25%, despite losing almost half its value the previous week.
Another bloodbath, possibility of recovery of Bitcoin?
Before the four percent drop in the value of BTC, a cryptocurrency trader with an online alias "The Crypto Dog" suggested that it may be a risky period to start trading on the short-term trend of the dominant cryptocurrency due to its volatility in a low price range.
Following the weak performance of BTC during the day, the trader He said:
"BTC daily minimum closed from the beginning of the year." "Is it still a chance of recovery before other lows?" "Well maybe, but I'm not betting on it."
Another eminent technical analyst, DonAlt, echoed a similar sentiment and said that as long as the price of Bitcoin does not exceed the higher resistance levels of $ 3,600 and $ 3,800, it is a significant risk to enter a long position on the short-term trend of BTC.
"Closed under the low swing – a stiff rejection followed.There is still a lot of support in the daily span of time.Thus previous support areas have reversed resistance.To it will not change – stay away from long ", the analyst He said.
Over the past six months, the overwhelming majority of major cryptocurrencies and ERC20 tokens have decreased by 50-80% compared to BTC, which has declined by almost 85% on its own. For Bitcoin, decreasing a level similar to that of Ethereum, for example, should lose an additional 72 percent from the current price.
While Bitcoin struggles and while venture-capital firms move away from the cryptocurrency sector due to falling prices, the asset will probably not be able to kick off a breakout of over $ 4,000 in the coming weeks.
BTC has already been able to maintain the range from $ 3,000 to $ 4,000 for over three weeks, starting November 24th. Until the asset begins to show signs of a multi-month consolidation period and a high level of stability, a gradual recovery in prices and volume may be unlikely.
Bad period
This week, Barry Silbert, founder and CEO of Digital Currency Group (DCG), a venture capital firm focused on large-scale cryptocurrency, said that venture capital companies have begun to withdraw from agreements with companies in the encrypted sector.
Silbert He said:
"We have seen half a dozen fund-raising offers collapse in the last month, after the lead has been withdrawn, all wrong with Crypto VC Investor Land Good time to remind the founders that a signed term sheet is not equivalent to bank liquidity . "
As the prices of encrypted assets decrease and venture capital firms are unable to do so, it is unlikely that further investments will be made until the market begins to recover.
Click here for a bitcoin price chart in real time.
Shutterstock foreground image. TradingView Charts
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