Bearish Crypto Market Movement Until When?
This week was one of the worst periods for Bitcoin and the entire cryptocurrency market in 2018. Bitcoin repeatedly fall after breaking down from the previous weekend, while other major cryptocurrencies recorded larger losses and consequently pull down the global cryptocurrency market probably due to Bitcoin representing around 38% of the market.
Bitcoin fell below the USD 7 200, 6 800 and 6 500, a level until 6 100 and at the time of writing, the value bounce back to USD 6 500,a nearly 70 percent decrease in value over that time span. The next major support level is at USD 6 000, and if it’s falling below it could result in bitcoin huge drop to USD 5 000.
According to CCN news, the latest recover can be mainly attributed to the extremely low Relative Strength Index (RSI)of BTC. The collapse of Bitcoin led to the collective dive of other digital currencies, Ethereum reached a new low of 465 US dollars, Litecoin price under USD 100, hit a new low of 2018, EOS directly back to 10 US dollar mark. The overall market value of digital currency sharply reduced, down to USD 265 billion from about USD 380 billion.
New traders who are probably discovering the high volatility of this speculative market might need a quick review of the market. Looking at the history of Bitcoin’s price, it has experienced more than 200 major price fluctuations in 9 years, but generally speaking, the price has been an upward trend in a long-term perspective:
- on June 15, 2011, Bitcoin price was USD$ 13
- on December 5, 2013, Bitcoin price was USD$ 1 042
- on June 15, 2016, Bitcoin price was USD 696
- on December 16, 2017, Bitcoin price was US$ 19 343
- on June 15, 2018, Bitcoin price was US$ 6 597
What Triggered the Drop of Bitcoin?
- According to unnamed sources told the Wall Street Journal, Bitcoin’s price may have been inflated. The US Commodity Futures Trading Commission (CFTC) demanding trading data from Bitcoin Exchanges to determine whether or not manipulation has distorted cryptocurrency markets. This move may cause the market panic for non-technological believers.
- Some cryptocurrency analysts have suggested that the price drop has something to do with market manipulation of the Tether’s USDT token, as reported by explosive new research from University of Texas finance processors John Griffin and Amin Shams. They examined the flow of Tether and determined that roughly half of Bitcoin’s price in 2017 could be traced to the hours immediately following its movement into other exchanges — typically during periods where cryptocurrencies were in decline.
The crypto markets are tumbling and hitting the skids. In the coming weeks, ICO tokens will suffer deeper lacking global confidence if their waiting products are not delivered in time. The biggest losers in the market will be ICO tokens and small cryptocurrencies that follow the rise and fall price changes of Bitcoin and Ethereum. The time will show us which projects have a strong community and a real go to market product.
This is a time when both opportunities and challenges coexist. After such a large decline, the recovery is also likely to be very strong but not soon.
Crypto4all’s View:
- The bitcoin price is likely to fall below the previous low of USD 6 400 if not good announcement is done by big players.
- Perhaps in July will be the bottom of the cryptocurrency market this year.
- The next rally would take longer and at uncertain time.
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