Bitcoin has been unable to stabilize above $3,500 which has led to a widespread sell-off that has sent most cryptocurrencies down 2% or more. Despite today’s drop, many altcoins have been able to maintain their recently established levels of support.
At the time of writing, Bitcoin is trading down 1.8% at its current price of $3,440, down marginally from its 24-hour highs of $3,550. Earlier this week, Bitcoin climbed to highs of nearly $3,700 before quickly being pushed downwards, signaling that this price level could be a level of resistance for Bitcoin.
Over the past several days Bitcoin appears to have found support at $3,400, bouncing slightly when this price was touched on both today and this past Tuesday.
Analyst: Bitcoin Less Likely to Bounce the Longer it Trades Sideways
As Bitcoin continues to range between $3,400 and $3,700, one analyst claims that the likelihood of a bounce is continually decreasing.
While speaking to MarketWatch regarding Bitcoin’s sideways trading in the mid-$3,000 region, Jani Ziedins of CrackedMarket said that the longer any asset trades at a low price, the less likely it is that the asset is oversold.
“Bitcoin continues to muddle along in the mid-$3k range. The longer we maintain these levels, the less likely it becomes that prices are oversold and poised for a pop. The public has largely written cryptocurrencies off as a fad and no new money is coming in. The lack of demand will continue to be a big liability.”
Although there are no catalysts for a price run in the near-future, the release of institutional-aimed products throughout 2019, like the ones being offered from both Bakkt and Fidelity, could lead to both an influx of funding as well as an influx of positive news from the mainstream media regarding the cryptocurrency markets.
Altcoins Trade Marginally Lower
Bitcoin’s inability to stabilize above $3,500 has led the altcoin markets to drop slightly, although they have generally held steady above their recently established support levels, which were formed earlier this week when Bitcoin fell to $3,400 from $3,700.
Ethereum is one of today’s best performing altcoins and is currently trading down 0.5% at its current price of $91. Earlier this week, Ethereum formed the $88 region as a level of support and appears to have stabilized above the $90 mark.
XRP is currently trading down 1.5% at its current price of $0.305 and is continuing to closely follow Bitcoin’s trading patterns. XRP has found support in the $0.30 region, and only briefly dipped below this price earlier this week.
One of today’s worst preforming altcoins is Bitcoin Cash (BCH), which is currently trading down nearly 6% at its current price of $98. Bitcoin Cash is currently hovering right around its all-time-low of $97 and is showing little to no signs of fundamental strength.
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