Bitcoin price Crypto Carnage: Bitcoin dropped to $ 3,350, 6 billion dollars was eliminated.
In the past 24 hours, the price of bitcoins fell by more than 5% from the current low of 3,550 dollars to 3,357 dollars.
As the price of bitcoins plummeted, the encryption market lost nearly $ 6 billion in hours. Among the major cryptographic assets, including Bitcoin Cash (BCH), the biggest drop in the month is a record of more than 10% loss.
Some analysts expect the price of bitcoins to fall to the lowest value for the first time in 12 months, after the short-term decline in the encryption market.
Bitcoin price decline factor
Since the beginning of January, the encryption market has been trying to show high volatility for over 3 weeks.
From 11th to 27th January Bitcoin was stable between $ 3,500 and $ 4,000 in 16 days.
A sharp drop in the price of bitcoins and other crypto assets may be caused by technical factors rather than a fundamental factor.
Josh Rager of the cryptographic currency trader said on January 28 it would be inevitable that after the two weeks of stabilization the dominant cryptographic currency price fell below 3,400 dollars, it would be the first lowest in 12 months.
“BTC will continue to be very weak, eventually the alternative encryption currency will succumb to Bitcoin. When Bitcoin breaks down and closes the zone below $ 3,445 we will re-test the lows in 2018. If the dollar Lateral action before surrender, “he said.
A general story of Bitcoin’s bullish price fluctuation in 2019 is the beginning of the cumulative period after a long bear market.
However, many analysts explained that the accumulation period does not necessarily lead to a medium-term rebound.
Alex Krüger, economist and cryptographic currency analyst, says:
For people to accumulate, other people must be distributed. This is a zero-sum game. The accumulation itself is neither bullish nor bearish. Based on current transaction volumes, I bet on exchanges and miners that are currently “cumulative”. Eventually, they may start dumping again.
Earlier this week, CCN reported that the cryptographic currency industry is expanding and that the number of companies in major regions is growing steadily.
Basic indicators such as transaction volume of Bitcoin network (about 280,000 transactions per day) and use of the distributed application (DApp) in smart contract contracts have recovered from the end of 2018.
Considering that the relatively stable price range of most encryption currencies failed in a few weeks, it is expected that volatility will decline in the coming weeks.
Among analysts, if the price of bitcoins falls to the lowest price in 12 months, to 3,122 dollars, there is a possibility that the value of other major crypto assets and market cap token will drop sharply rather than bitcoins and dollars There is a prediction.
Today, Ethereum has dropped by more than 7% from 112 US dollars to 104 US dollars, close to a dollar support level dangerously close.
The cryptographic currency trader said online e – alias “The Crypto Dog”, Ethereum using Ethernet short selling at the beginning of January is on a downward trend.
“In fact, ETH is moving towards my goals, traders want to follow the long-term goal of 2019 without leverage and want to set a loose stop at an average price of $ 97.50 and around $ 90 I said.
Gloomy short-term future
In the short term, traders generally expect that key cryptographic assets will function poorly for Bitcoin and the US dollar.
Bitcoin cash has been replaced with Tether (USDT), a stable currency supported by the US dollar at a 1: 1 ratio. Tron’s monthly growth rate was 134%, but it began to decline, nearly 10% declined in 12 hours.
Traders believe that if Bitcoin is able to exceed $ 3,400 in the next few days, traders can prevent this from further downwards in the low range of $ 3,000.