Bitcoin price and Ethereum price witnessed a fall of more than 3% in the past 24 hours. The market’s valuation has dropped by a whooping $4Billion. While cryptocurrencies struggle hard to show any signs of a positive correction, small market cap assets and ERC tokens rose by more than 10%. This can be attributed Coinbase’s listing of Civic (CVC), district0x (DNT), Loom Network (LOOM), and Decentraland (MANA)
Is Bottom Still a far-fetched Proposition?
Bitcoin price reached $3,370 from it’s peak at $3,587. A major bone of contention of the short-term price trend is it’s low daily volume. During a steep sell-off or a 5 to 10 percent dip in prices, an asset witnesses substantial increases in daily volume as the sell volume increases dramatically.
However, if the volume doesn’t increase despite it’s falling value, it implies the free-fall of asset without a high-sell pressure. This also means it has relatively small orders from the alleged bears in the market.
Ethereum Price follows the Same Suit
Ethereum continues to experience similar downtrend and witnessed the same dip in its daily volume. The volume of ETH dropped from $2 Billion to $1.6 billion. Traders predict a bottom for Bitcoin this week seeing it’s strong recovery of Bitcoin from the low $3,000 region with $3000 support level unperturbed.
A cryptocurrency technical analyst with an online alias “Hsaka” 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).”
Considering the short-term trend of ETH, Edward Morra, a recognized digital asset trader, speculates ETH dropping to $55 suffering a 35 percent dip.
“If ETH bulls lose this support and low set at $83, it is basically vacuum till next meaningful support around $55 – $45, another 35% downside from here.”
With increasing regulatory pressure from the U.S. Securities and Exchange Commission (SEC) and traders being wary of ICOs, tokens could continue to lose value from it’s low price range. Unfortunately, this can also lead to some losing all their value in short term.