The strong rally and increased volume on the crypto market recently corrected, leading to a new loss for the cryptocurrencies including Bitcoin, Ripple, Bitcoin Cash, Ethereum, and EOS – all recording large losses against the US dollar.
Even though Bitcoin only declined by 1%, Ripple, Bitcoin Cash, and EOS (which are the 3rd, 4th and 5th largest cryptocurrencies by valuation) all lost 6% of their value over the past 24 hours.
This led to a total market cap loss of $13 billion. However, what’s interesting is the fact that the volume of Bitcoin and Ether have both increased. While BTC increased its volume to $4.9 billion, ETH increased to $1.8 billion respectively (from $3 billion and $1 billion last week).
This is why the four-day stability reassured many analysts that the price of Bitcoin will move by a large margin, whether on the upside or the downside. A fall from this level to below $6,000 would force the market to enter a minor correction for the second time in the past month.
Still, analysts think that Bitcoin can break above the $6,700 mark in the next 24 hours. If that happens, the downtrend can transform to a short-term rally. Still, a break above $6,700 is at the time highly unlikely to happen.
When asked about the current market situation, investors are still optimistic.
The CEO of BitMEX, Arthur Hayes, said that Bitcoin will achieve $50,000 by the end of this year but will correct and drop from $3,000 to $5,000 in the short-term.
Clem Chambers, who is the CEO of ADFN (financial data provider) also said that he expects the price of BTC to fall to the $2,000 mark before rebounding and moving back to the all-time high of $20,000 as in December 2017.
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