Bitcoin and Ethereum Price Drop By 3%, What’s Next ?
The Bitcoin and Ethereum Price have fallen by more than three percent against the U.S. dollar over the last 24 hours.
The cryptocurrency market experienced a $4 billion drop in its valuation, by just about 3.5 percent. While major cryptocurrencies struggled to demonstrate signs of a potential corrective rally, small market cap cryptocurrrencies and ERC20 tokens plunged by more than 10 percent on average.
Today, the Bitcoin price dropped from $3,587 at its peak to $3,370. From its daily peak, the dominant cryptocurrency is actually down six percent.
One troubling sign of the short-term price trend of BTC is its low daily volume. In a steep sell-off or a 5 to 10 percent dip in price, an asset tends to see an increase in daily volume as sell volume intensifies.
When the volume of the asset does not increase but still drops in value, it suggests that the asset is free-falling without high sell pressure and with relatively small sell orders from the bears in the market.
The Ethereum cost has been encountering a comparable pattern as Bitcoin as its value fell by about indistinguishable size from BTC with a drop in day by day volume. In the previous week, the volume of ETH has dropped from $2 billion to $1.6 billion, by about 20 percent.
A few brokers have called a base for Bitcoin this week, seeing the solid recuperation of Bitcoin from the low $3,000 locale with the $3,000 bolster level unblemished.
A cryptocurrency technical analyst said:
“Rejected by previous support. Seems to be forming a descending channel on the LTFs (aka a way to visualize a downtrend). I often use channels for confluence with horizontal levels (both the rejections from the black horizontals were also at the channel boundary).”