Bitcoin Crypto

Bitcoin Drops to $4,000 as Sell-Off Reignites, There Could Be a Larger Trend in Play

Cole Petersen | November 30, 2018 | 6:30 pm
Bitcoin
Bitcoin

Bitcoin Drops to $4,000 as Sell-Off Reignites, There Could Be a Larger Trend in Play

Cole Petersen | November 30, 2018 | 6:30 pm

After a couple days of upwards trading, the cryptocurrency markets have continued to sell-off, led by Bitcoin, but are still sitting above their recently established lows. Today’s drop could be the result of traders taking profits on short-term long positions, according to one research firm.

At the time of writing, Bitcoin is trading down 6.5% at its current price of $4,045, down from yesterday’s highs of just over $4,400, but still up over 12% from its recently established lows of $3,600, which were set earlier this week.

This downwards move, however, could be temporary, and could be the result of traders taking profits on their short-term long positions.

While speaking to MarketWatch, analysts at the U.K.-based research firm, FX Pro Insights, explained this theory, adding that it remains unclear as to whether or not a long-term bottom has truly been established in the markets.

“Many market participants have decided to take an optimistic approach and BTC’s decline to $3,500 was an important support point for the cryptocurrency… Within this context, it should be noted that speculators may soon begin to profit from this trend, which may trigger a new wave of sales… The real question is: Has the crypto market indeed reached the bottom?” they said.

Yesterday, Rob Sluymer, a technical analyst at Fundstrat Global Advisors, said that Bitcoin may be in the midst of a multi-quartering bottoming pattern, which could mean that a new upwards cycle is just around the corner.

“In contrast to bounces that have developed through 2018, weekly RSI [relative strength index] is now at levels not seen since BTC’s last bear market low in early 2015 and BTC is showing very early evidence of responding to its long-term uptrend after three major downside moves through 2018… Our expectation is that BTC is in the very early stages of establishing a multi-quarter bottoming process that is likely to extend well into mid-2019,” Sluymer explained.

Related Reading: Prominent Crypto Analyst: Bitcoin over $4,400 May Catalyze 10% Rally

Altcoins Trade Down 

Presently, the altcoin markets are trading down across the board, with many cryptos trading down 4% or more from yesterday’s prices.

At the time of writing, XRP has declined 4% at its current price of $0.36, a drop from its recent highs of nearly $0.40, but up over 10% from its recent lows of $0.32. It is important to note that XRP is still trading up significantly from its 2018 lows of $0.24, which were set in August and re-visited in early-September.

Ethereum is currently trading down just under 4% at its current price of $114.8, which is a drop slightly from yesterday’s highs of $126, but it is still trading up nearly 15% from its recently established 2018 lows of $100.

Stellar (XLM), which was one of the best performing altcoins of the past couple of days, was unable to avoid today’s drop, and is currently trading down 4% at its current price of $0.16. XLM has secured the number four position by market capitalization, surpassing that of Bitcoin Cash.

Featured image from Shutterstock.
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NewsBTC is a news service that covers bitcoin news, technical analysis & forecasts for bitcoin and other altcoins. Here at NewsBTC, we are dedicated to enlightening people all around the world about bitcoin and other cryptocurrencies. We cover news related to bitcoin exchanges, bitcoin mining and price forecasts for various virtual currencies.

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