Price drops below key $6,000 level
On Wednesday the price of BTC fell to a more than one year low as reported in a Reuters article. On the way down it was able to break through the key support level of $6,000. This caused a wave of selling both of bitcoin but of other cryptocoins as well, This is a continuation of a slump that started early in 2018.
On the Bitstamp platform BTC fell as low as $5,533. When the article went to press it was down nine percent at $5,690.
Neem Aslam an analyst as ThinkMarkets an online brokerage said: “For the last few days you could see the consolidation happening and the price was moving on the downside. The break of $6,200 yesterday gave a fair indication that there are no buyers on the sidelines at this point.”
Whole cryptocurrency market in a down mood
The entire cryptocurrecny market suffered declines with ethereum, the second largest coin dropping down to a two-month low. At last reading it was down a full ten percent on the day at $182.41.
The downturn on the crypto market forced the total value of the market down below the $200 million mark. On November 7 the market was trading a high as $220 billion. At the time many who were bullish on BTC thought that it could break through the 200-day moving average and begin to inch back up to the all-time high of near $20,000 last December. But the breakout never happened. Instead there was a slow decline in the price.
Although Bitcoin Cash was the worst performer among large cap coins, it was far from alone. Of the top 100 cryptocurrencies only 3 managed to tread water against the US dollar. Seven of the top ten coins posted drops of at least ten percent.
Over the preceding 24 hours the entire market dropped by more than $19 billion. At the time of writing of a CNN report the value was $192 billion. The total value of the currencies dropped below the $200 billion market for the first time since October 14 and was its lowest since mid-September.
As often happens when the larger market declines, the dominance of Bitcoin increases. At present it is at 54.2 percent as contrasted with 51.8 percent on November 7th. With a market drop investors change into Bitcoin often on their way out to US dollars. This gives BTC greater dominance.
CoinDesk analysis
On CoinDesk Omkar Godpole has his usual analysis of the price movement of BTC. It was last updated at 12:12 UTC. Based on his analysis Godpole’s view is: “The upcoming death cross on the three-day chart could push prices below the June low of $5,774 but might mark the final leg of the current bear market.The long-awaited bullish reversal is seen gathering steam above the 50-candle SMA on the 3-day chart, currently at $6,629. A move above $7,400 (September high) would signal completion of the bullish reversal.”
Present situation
Godpole’s analysis was before the big drop today. The price did as predicted break through the $5,774 mark and then some. However, it is not clear the bear market has ended. At 19:50 Central Standard Time BTC was at $5,569 well above its low but nowhere near the $6,000 level and not signalling the bear market is over as yet. Over the 24-hour period BTC lost more than $680 dollars. The present price of Bitcoin can be found here.
