Bitcoin Price has dropped to a new yearly low at $3,200 following a large sell-off from the $3,400 region. Ethereum( ETH), Stellar( XLM) and Bitcoin Cash (BCH) also experienced similar losses with BCH witnessing a steep decline of more than 11%. BCH price has witnessed a drop of more than 25% in the previous week and has fallen from $116 to $89. This decline is alarming since the asset lost nearly half of it’s value.
Will Bitcoin Price witness Positive Trends?
A cryptocurrency trader with an online alias “ The Crypto Dog” suggests that it might be risky period to bet on short- term trends of the currency due to high volatility.
Noting the poor performance of BTC on the day, the trader said:
“BTC lowest daily close year to date. Is there still a chance of recovery before more lows? Well, maybe. But I am not betting on it.”
DonAlt, a prominent technical analyst says that till Bitcoin breaks major resistance levels at $3,600 and $3,800, it is a very risky proposition to bet stakes on the short-term trend of BTC.
“Closed below the swing low – harsh rejection followed. There isn’t much support on the daily time frame still. So far prior support areas have flipped into resistance. Until that changes – stay away from longs,”
the analyst said.
In the past six months, major cryptocurrencies and ERC 20 tokens have fallen by 50 to 80 percent against BTC. As Bitcoin continues to struggle and venture firms become increasingly wary of the market, it is unlikely that Bitcoin price will break the $4,000 mark.
Bitcoin price has been able to maintain the range of $3,000 to $4000 for three weeks now. Till the time asset shows any signs of a multi-month consolidation period, gradual recovery in price and volume is highly unlikely.
Barry Silbert, the founder and CEO of large-scale cryptocurrency-focused venture capital firm Digital Currency Group (DCG) said that Venture Capital firms have started to move out of the crypto market.
“We’ve seen half a dozen fundraising deals fall apart over the past month after the lead pulled out. All is not well in crypto VC investor land Good time to remind founders that a signed term sheet does not equal cash in the bank.”