Bitcoin Price Desperate to Break Out From Below $3,800 as the Markets Reach Lowest Levels Since September 2017
On Saturday, Nov. 24, price if the flagship cryptocurrency dropped below the $4,000 support level for the first time since September 2017. It even went worse, as Bitcoin dropped at some point below $3,500 at exchanges like Coinbase and Bitstamp, however, come Sunday evening, the prices were somewhat stabilized around the $3,750 mark, as CoinMarketCap data showed, attempting to get back to $4K.
Other major cryptocurrencies are also suffering double-digit percentage losses for the same period, with XRP at $0.3512(down 12.03%), Ether (ETH) at $112.10 (down 7.67%), EOS at $3.25 (down 8.00%), and Stellar (XLM) at $0.1437 (down 17.63%).
At some point, the total market capitalization fell down below $115 billion mark, the lowest seen since September 2017.
Litecoin (LTC) has dropped as much as down to $28.37 (-7,33%), Cardano (ADA) is changing hands at $0.0359 (down 13,72%), while Monero (XMR) is suffering as well, trading at $54,79 (down 14,27%).
With so much negativity about Bitcoin, including the delay of Bakkt futures platform and the events surrounding the recent Bitcoin Cash hard fork, perhaps it is not surprising to see the price of Bitcoin drop below $4,000 mark. Still, things weren’t too bad on Sunday, as BTC did try to break out from the support levels, only to be stopped sooner or later.
This latest attempt came around 17:15 UTC, with BTC getting close to $,4000 at Bitfinex. The cryptocurrency was still trading around $3,800 on Coinbase.
Earlier this week, Michael Moro, the CEO of Genesis Global Trading, a subsidiary of Barry Silbert’s Digital Currency Group (DCG) and one of the largest over-the-counter (OTC) cryptocurrency dealers, said that he could see the Bitcoin price falling even further, before bottoming out around the $3,000 level.
“From a technical standpoint, it’s absolutely been ugly. I think the drawdown, which started in mid-December of last year, which has lasted basically for 330 days, has seen no abatement in terms of the price pressure. The $5,900 price level that has acted as a support a few times in 2018 really kind of broke down toward the end of last week. We had some institutional buyers come in on the OTC side, but the flow on the retail side was too much. And once the price kind of hit the mid-$5,500s, I think it was basically straight downhill to the $4,200 level,” he said.
Elaborating on the possible “bottom”, Michael Moro said:
“I think it really is dependent on your time horizon. In terms of if this a good buying opportunity, if you are a daytrader or looking to make a quick buck and looking at buying a drip here and then trying to sell higher, I think that’s really difficult. I think the key thing to keep in mind for the longer term buy-and-hold investor is that Bitcoin has done this before. This is about the fifth or sixth 75+% drawdown that we’ve seen in the ten-year history of Bitcoin. And so, if you have that lens, I don’t believe institutional investors ultimately care where the price of Bitcoin ends at 2018 simply because they’re looking at things three to five years out.”
At press time, 19:45 UTC on November 25, 2018, BTC is trading at $3,892, down 8.92% in the past 24-hour period, with the market cap standing at $67,71 billion.
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