Major cryptocurrencies in the market experienced a fall in the range of 5-15% in last 24 hrs with Bitcoin falling back from its $7000 mark.
After reaching to $7100, within 12 hours, Bitcoin’s price fell to $6900. As of now, Bitcoin has stabilized in the lower regions of $6900 for now, multiple traders believe it would again fell towards $6500 region to gain stability.
Lil Uzi Vertcoin, cryptocurrency trader and technical analyst, said:
“BTC topped the bollinger bands and rejected the ichimoku cloud resistance here, $7,130 is the resistance to break but it looks more difficult now, expecting $6,700 to $6,500 to be good support. I’ll probably long if we test $6,500-$6,600 again.”
In August, Bitcoin has been pretty stabilised in the mid $6000 range by showing strong volume indicating proper mid term recovery but faced struggle to break the $7000 mark.
Since last week, there has been noticeable reduction in the trading volume of Bitcoin and Ethereum.
Today, the daily trading volume of Bitcoin is more than $4.3 Billion while Ether’s volume is close to $1.5 Billion USD. As compared to their previous rally in the same time last year i.e. August’17, the volume was close to $5 billion.
In contrast to the deprecating performance of Ethereum, Tether, USD back cryptocurrency had been seeing good amount of improvements. USDT/Tether volume has risen to $3 billion, more than twice of Ether, inclining towards the increased adoption of USD backed cryptocurrency.
To be noted, since most traders have admitted to not indulge in high-risk and high-return trade, in case Bitcoin falls to the mid-$6000 range as speculated, multiple small tokens and altcoins would be bleeding out.
The reason credited to this bleeding could simply be the high variance in small market cap cryptocurrencies is huge, in the order of 10-30 percent in a day.