Large market cap cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), and Bitcoin Cash (BCH) have dropped in value once again.
In the past 24 hours, the cryptocurrency market lost more than $6 billion, as its valuation dropped from $142 billion to $136 billion.
Bitcoin, which seemed to be demonstrating a fairly strong price movement in the last two days from November 28 to 29, experienced a $150 price drop, becoming vulnerable to falling below the $4,000 mark.
Depending on the volume of the cryptocurrency, technical analysts see the price of Bitcoin in danger of dropping below $4,000 to around $3,600 to $3,800 in the short-term.
Alex Kruger, an economist and cryptocurrency trader, said on November 29, prior to BTC’s abrupt 3 percent drop, that a breakount of the $4,400 mark could potentially lead to BTC achieving $4,800 to $4,900.
Bitcoin failed to engage in an upward movement above the $4,300 mark, falling back down to $4,100. At the time, Kruger said:
“Looking for $4,800 – $4,900 if $4,400 gets breached. That’s the base of Nov 19 and right above 20EMA. Starting with 4800 interested in shorts. This was initially 4400, changed plan. Below $3,700 exit longs. Too soon to short the lows again, would like prior consolidation for that.”
The analyst stated that a bottom was established shortly after Bitcoin recovered beyond the $4,000 this past week, but emphasized that a proper bottom is yet to be formed by the dominant cryptocurrency that would allow it to breach major resistance levels in the $5,000 to $7,000 range.
“That’s a static/base trading game plan with rough levels. Decision making is actually dynamic. All of this is irrelevant for investors. Based on the macro landscape, IMO the bottom is not in, regardless of how great the chart may look,” he added.
Technical analysts like Mayne also suggested that the price of BTC will likely remain in the range between mid-$3,000 to mid-$4,000 throughout the foreseeable future, unless the asset initiates a major price increase within a 24-hour span, as it did on November 28 by recording a 13 percent price surge.
Tokens Bleed Out
Between November 28 and 29, as Bitcoin increased from mid-$3,000 to $4,200, both large and small market cap tokens recorded an average gain of 20 percent against the U.S. dollar.
Over the past 24 hours, tokens recorded losses in the range of 10 to 15 percent, nearly deleting all of their weekly gains.
0x (ZRX), Polymath (POLY), and Ziliqa (ZIL) are amongst the worst performing digital assets on the day, with ZIL recording a steep 14 percent decline in value.
In a period in which 0x and BAT are performing poorly against the U.S. dollar even with the listing by Coinbase that clears the assets from being considered as securities in the U.S. market, tokens are expected to continue seeing large losses in the short-term.
The U.S. federal court recently ruled a case in favor of an ICO project against the U.S. Securities and Exchange Commission (SEC), and the case could lead investors to believe that high profile projects that have the resources to comply with local regulations could be protected from the SEC.
Click here for a real-time bitcoin price chart.
Featured Image from Shutterstock. Charts from TradingView.
Last modified: March 4, 2021 3:13 PM