Crypto market is tumbling again, the price of the top cryptocurrency, Bitcoin has declined by around 6 percent while other popular cryptocurrencies such as Ethereum and Stellar have dropped by more than 10% in the past 48 hours.
Within a short period, the price of Bitcoin has dropped from $3,913 to $3,678. Other cryptocurrencies followed the same trend and lost their values. The price of Ethereum (ETH) declined from $112 to $101 while the price of Stellar (XLM) dropped from $0.15 to $0.13. This decline led the crypto market to lose around $6 billion of market capitalization.
In October this year, the prominent crypto analyst Willy Woo said that the Bitcoin would not touch the low until the end of the second quarter of 2019. He also 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.”
But in the last week of November, the bears started to sell off Bitcoin which led the Bitcoin (BTC) to touch the lowest level of 2018 which is $3,456. It was the strongest sell-off of the year. From the past two weeks, Bitcoin is following the downtrend. Based on the volume of BTC, it is expected that the top cryptocurrency will touch another low in near future. The price of Bitcoin is dropping at a rapid pace because of a significant surge in the daily volume which means that new bears have entered in the market, the leading cause of this downtrend. But in the last week of November, Bitcoin and other cryptos were freely falling with low daily volume. If we talk about today, the price of Bitcoin dropped to nearly 4% while the volume declined from around $6 billion to $5.3 billion.
In the current market scenario, it is becoming unavoidable for Bitcoin to drop to a new yearly low in the range of $3,000 to $3,400. DonAlt, the technical analyst said that the support level for Bitcoin is not strong enough if BTC continues to fall below the support level then a drop below the level of $3,000 could be the next target. He said that
“Closed below support, not looking too pretty. BTC needs to reclaim supports quickly otherwise. I expect it to go for the previous lows. If those don’t hold I’m looking at $2,900. There are no supports left on the daily, hope for a fakeout or SFP at the lows.”
Though the crypto market is in a downward trend but some tokens such as Waves, Aion, Maker, Chainlink, and Theta performed significantly better than other small market cap ERC20 tokens.