Over the last 24 hours, the valuation of the crypto market has fallen from $185 billion to $181 billion, by around $4 billion.
Bitcoin Cash, even with the combined value of Bitcoin Cash SV (BCHSV) and Bitcoin Cash ABC (BCHABC), has fallen by more than seven percent. Subsequent to the fork, the price of BCHABC, the original Bitcoin Cash chain with the roadmap set forth by bitcoincash.org, dropped by more than 15 percent to $250.
Yesterday, on November 16, CCN.com reported that Crypto Rand, a cryptocurrency technical analyst and trader, said that the probability of a $4,800 to $5,000 bottom for Bitcoin (BCH) is increasing.
“Crypto Rand, a respected digital asset analyst, stated that a fall to the $4,800 to $5,000 range is possible, given that technical indicators have not shown any signs of a bottom,” the report read.
The Crypto Dog, another prominent analyst, said that a bottom at $4,800 has become more likely for BTC.
“Same target I’ve held since February of this year, I think there is a strong possibility that $4,800 is the bottom.
While both major cryptocurrencies and small tokens have started to demonstrate independent price movements by breaking its correlation with BTC, a further 12 percent drop from $5,500 to $4,800 could result in intensified downward movements for cryptocurrencies with lower daily volumes.
Currently, the daily trading volume of BTC is hovering at around $5 billion. In contrast, Ripple (XRP), Bitcoin Cash (BCH), and Stellar (XLM) are demonstrating volumes in the range of $100 million to $800 million, less than 16 percent of the volume of BTC.
If the most dominant cryptocurrency in the market continues to demonstrate weak momentum and massive sell-pressure, then digital assets with lower volume will inevitably fall with BTC.
On Thursday, almost immediately after the fall of BTC from $6,300 to $5,500, Josh Rager, an investor in various blockchain initiatives, said:
“$5,500 area currently holding up BTC, when (it’s only a matter of time) a daily candle closes below here it will head to $4,900 area Strong support between $4,300 to $4,600 – BTC will likely bounce very hard here – in my opinion, a good place to buy R/R regardless if it heads lower”
The sentiment around cryptocurrencies has generally been negative this week, due to the sheer intensity of the crash of the market over the past several days.
For tokens and small market cryptocurrencies, the U.S. Securities and Exchange Commission’s accelerated investigations into token sales and initial coin offerings (ICOs) could lead to a large short-term drop in confidence from investors in the public market.
With Paragon and AirFox already ordered by the U.S. SEC to refund investors and pay a $350,000 additional fine, investors will likely avoid investing in tokens until regulatory frameworks around the space are properly established.
Featured image from Shutterstock.
Last modified: May 20, 2020 2:22 PM UTC