In the last two days, other major cryptocurrencies like Ethereum and stellar (XLM) has a price decline of about 10% the price of Ethereum dropped from $112 to $101 while the stellar price declined from $0.15 to $0.13 by over 13%. It is found that the crypto marker as a whole lost about $6 billion of its valuation as tokens and on average lost around 10 to 20 percent of their value against the U.S. dollar.
Waves, Maker, Aion, Chainlink, and Theta performed significantly well better than most of the small market cap ERC20 tokens in the global market, recorded steep sell-offs on the day.
Is $3,000 Bitcoin Unavoidable?
On 25th November, the price of Bitcoin (BTC) had a dive to its yearly low at $3,456 as it began to fuel one of the strongest sell-offs in all of 2018.
Before that in October, cryptocurrency analyst Willy Woo said that the dominant cryptocurrency will likely not reach the bottom until the end of the second half of 2019.
Woo said that:
“Putting together the blockchain view, I suspect the timing for a bottom may be around Q2 2019. After that we start the true accumulation band, only after that, do we start a long grind upwards.”
Based on the intensity of the downtrend of bitcoin in the past two weeks, there is a drop in the low range of price from $3000 to $3400 which seems to be unavoidable especially when you consider the BTC volume.
If the BTC has a price drop at a rapid rate which is due to a significant quick move in its daily volume then it is said that the price drop occurred due to the entrance of new bears in the market. And since its late November, BTC and the remaining major cryptocurrencies are free falling with the daily volume.
The price of BTC fell by nearly 4% on 6th December and yet its volume declined from around $6 billion to $5.3 billion.
Some technical analyst including DonAlt said that the BTC support level is not strong enough and if the same continues then it will fall below the support level, a drop below $3000 will be the next target.
“Closed below support, not looking too pretty”.
So BTC needs to reclaim supports quickly
State of the Market
And at present, the momentum oscillators are demonstrating the oversold conditions of BTC at $3,700. The crypto market is expected to experience a minor recovery from its low price range in a very short term.
However throughout December, if the large market cap cryptocurrencies fail to breakout from the major resistance levels then BTC is likely to remain in the tight range of $3000 to $4000.