Bitcoin price saw a decline of 5% in the past 24 hours. It fell from $3,505 to $3,322. Furthermore, this decline led to a loss of $10 Billion in crypto market valuation.
Major crypto assets such as Bitcoin Cash (BCH) and EOS (EOS) also recorded large losses throughout the past week.
Will Bitcoin Price drop below $3,000 ?
Despite recording intense sell-offs at times, Bitcoin has defended the $3,000 support level with strength on multiple occasions.
However, traders predict weakness in the short-term trend of Bitcoin price .In the upcoming weeks, the dominant cryptocurrency is likely to extend its bearish sentiment.
A cryptocurrency trader with an online alias “Mayne” stated
“All bear market my feed is ppl getting bullish at lower highs and bearish after dumps. $BTC could drop another 50% from here but most of you are better off sitting out or waiting for longs. The time to short bigly was all last year. Daily close looks good if this level holds,”
Mayne said.
Chris Burniske, a partner at Placeholder, stated that “smart money” is observing the price trend of Bitcoin and big buy walls could form if Bitcoin price dips below $3,000.
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Burniske suggested that many investors are trying to catch the bottom of the asset in the high $2,000 region.
He said:
Regardless of whether BTC breaks up or down, there are a lot of big buyers watching closely. A lot of smart money is hoping to nail a bottom (likely in the high $2000s, just cracking $3K, before popping back above 200 week SMA), or come in quickly when there’s significant consensus that the bottom is in & situation is de-risked.
Since January 18, Bitcoin and other major crypto assets have demonstrated a weak short-term price movement.
Negative Sentiments Prevail
Technical indicators demonstrate a lack of momentum in both major crypto assets and low market cap cryptocurrencies.
Coinbase chief technical officer Balaji Srinivasan stated that while it may be winter for crypto markets, in terms of innovation and developer activity, the cryptocurrency sector is flourishing.
“It may be the crypto winter for price, but it feels like the summer for innovation. Decentralized lending, interest, derivatives, prediction markets, Lightning and L2, zk-SNARKS/STARKS, bulletproofs, staking, stablecoins…lot of good things happening across the ecosystem,”
Srinivasan noted.
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