The cryptocurrency market has lost 5 billion USD over the past 24 hours. The total market cap has dropped from 124 billion USD to 119 billion USD over the past few hours, with BTC price dropping to the 3,500 USD region.
Bitcoin price expected to decline
Some cryptocurrency traders believe that a drop below the 3,500 USD mark could see the Bitcoin price drop even lower to test the 3,000 USD level. The drop in the price of Bitcoin and other leading cryptocurrencies has seen some traders predict that the market will suffer further losses.
DonAlt, a cryptocurrency trader noted that the price of BTC would most likely drop to the 3,400 USD region soon. He stated that “Perfectly responded to the drawn level. 3,500 USD has acted as support three times already if it is hit another time I’d expect it to break. Finally approaching a level (3,400 USD) that I might trade again. Until then still sitting tight fully hedged.”
If the BTC price continues to drop and reaches the 3,000 USD region, it may lead to an intense downward movement for the cryptocurrency and other leading altcoins. Ethereum which was previously the second most valuable cryptocurrency has lost more than 6 percent of its value against the US Dollars over the past 24 hours. It has subsequently dropped to third, behind Ripple.
Hsaka, a cryptocurrency technical analyst predicted that the three percent drop in the price of Bitcoin might lead to a further drop in its value. He, however, expects it to stay within the 12-month low of 3,122 USD.
The analyst stated that “Yesterday’s sell the rally analysis played out like a beauty. Bounced before the 3,430 USD support level. Took out lows (green dashed) of this consolidation. Neutral here, not shorting into HTF support. Covered my BTC short, holding ADA and BCH.”
Volatility still in play
Over the past few weeks, cryptoanalysts such as Willy Woo predicted that the bear market will still be around during the first two quarters of this year. Some market experts believe that the crypto market is close to bottoming out. However, they don’t see it recording new highs anytime soon.
Crypto researcher “The Crypto Dog” earlier this month stated that “BTC has mostly bottomed (might even have put the final low in) but we’re not going to see a significant rally or new highs for a while, so that’s not much to get excited about. Cheers to a boring 2019.”
Cryptocurrency analysts believe that this year would be a boring one for the crypto market regarding trading activity and volatility.