The total cryptocurrency market capitalization fell by around $6 billion from over $133 billion to around $127 billion with the price of bitcoin falling below $3800. At the time of writing bitcoin is trading around $3755 with signs of further losses. Though bitcoin price managed to recover up to $4200 this week before the bears pushed the price back again as bitcoin price could not surpass the major resistance around this zone.
Declining Trading Volumes
Not only the price but also the trading volume of bitcoin has dropped significantly during the past few days. Yesterday, at the start of the day, the trading volume of bitcoin was around $7.25 billion which has dropped to around $6.15 billion at the end of the day. Also today, it has dropped even further down below to around $5.6 billion.
The overall market conditions are quite bearish as bitcoin is not being able to break the key resistances every time the bulls start to run. Just before the resistance level, the bears push the price below making its nearly impossible for bitcoin to rise above. According to market analysts, bitcoin will remain in a bearish trend for at least a couple of months before bulls can actually start to act. The price of bitcoin will most likely fall below $3000 before the year-end and may turn up to $2500 or $2000 in the upcoming few months.
Bitcoin Price Analysis:
Bitcoin is currently trading around $3755 at the time of writing. In the 24-hour chart, there is a major bearish trend line formed with resistance at $3800. Bitcoin will most likely test the major support around $3600 and if the support is broken, the price may turn up to the next major support around $3300. For now, the trend is quite bearish and if the selling pressure remains high, then bitcoin may fall below $3000 before the end of the year.
Disclaimer: The article contains the viewpoints of the author. The readers are advised to do thorough research and analysis before making any investment decisions in the cryptocurrency market which is quite volatile in nature.