The valuation of the crypto market has dropped from $205 billion to $199 billion, as Bitcoin dropped below the $6,500 mark once again.
In the past three hours, the crypto market has rebounded by $2 billion to $201.5 billion, demonstrating some resilience in the $200 billion region.
ETH, the native cryptocurrency of the Ethereum blockchain network, showed strong momentum over the past three days, achieving a monthly high at $227. While other major cryptocurrencies fell by 1 to 4 percent, ETH managed to record a slight 0.5 percent gain.
The crypto market may seem volatile to most investors but given the tendency of cryptocurrencies to increase or decline in value by more than 10 percent on a daily basis, the market has been relatively stable in recent weeks in comparison to the past several months.
In previous reports, CCN.com noted that the cryptocurrency market is going through a bottoming out process, recovering from its 80 percent correction since February of this year. Bitcoin has been showing stability in the $6,400 to $6,500 range and has rarely dipped below the $6,400 mark.
While ETH experienced a massive 50 percent drop in its price since September 5, it has recovered relatively quickly throughout this week and has started to stabilize in its low price range.
Undoubtedly, the cryptocurrency sector is still going through a bear market. But, the oversold conditions of the market portrayed by Williams Percent Range and other technical indicators suggest that cryptocurrencies have started the process of stabilizing in a low price range, which is beneficial for the mid-term growth of the market.
As expected, Tezos (XTZ), which experienced a 52 percent surge in price ahead of its mainnet release on Monday, experienced a minor retracement on its price, dropping by around 5 percent against the US dollar.
Nano, Qtum, OmiseGo, and Dragonchain, which recorded solid gains against Bitcoin earlier this week as Bitcoin neared $6,600, demonstrated losses in the range of 4 to 10 percent, struggling to show momentum in a lackluster period.
Generally, after a slight decline in price, a minor corrective rally occurs and major cryptocurrencies increase by small margins. But, the low volume of Bitcoin, which is currently at $3.3 billion, can be considered as a concern for traders.
Earlier this week, the volume of Bitcoin hovered at around $4 billion. In the past few days, the volume of BTC has dropped by 17.5 percent. In contrast, the volume of Ethereum has remained stable at the $1.7 billion mark.
If BTC fails to see a spike in volume in the upcoming 24 hours, BTC is unlikely to experience any major movement on the upside. ETH in contrast, which has seen decent gains in the past few days, is expected to continue its momentum on the upside, especially if it can maintain stability above the $220 resistance level, which it has not been able to achieve.
The next resistance level of Bitcoin is seen at $6,600 and $6,800, and BTC will need to comfortably break out of the two levels to achieve $7,000 in the short-term.
Featured image from Shutterstock. Charts from TradingView.
Last modified: May 20, 2020 5:59 PM UTC