Home / Crypto Currency / Dropping Bitcoin Volumes Brings Minor Market Retreat, Where Next?

Dropping Bitcoin Volumes Brings Minor Market Retreat, Where Next?


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The valuation of the crypto market has dropped from $205 billion to $199 billion, as Bitcoin dropped below the $6,500 mark once again.

In the past three hours, the crypto market has rebounded by $2 billion to $201.5 billion, demonstrating some resilience in the $200 billion region.

Crypto market valuation, chart from CoinMarketCap.com

ETH, the native cryptocurrency of the Ethereum blockchain network, showed strong momentum over the past three days, achieving a monthly high at $227. While other major cryptocurrencies fell by 1 to 4 percent, ETH managed to record a slight 0.5 percent gain.

Market’s Volatility

The crypto market may seem volatile to most investors but given the tendency of cryptocurrencies to increase or decline in value by more than 10 percent on a daily basis, the market has been relatively stable in recent weeks in comparison to the past several months.

In previous reports, CCN noted that the cryptocurrency market is going through a bottoming out process, recovering from its 80 percent correction since February of this year. Bitcoin has been showing stability in the $6,400 to $6,500 range and has rarely dipped below the $6,400 mark.

While ETH experienced a massive 50 percent drop in its price since September 5, it has recovered relatively quickly throughout this week and has started to stabilize in its low price range.

Undoubtedly, the cryptocurrency sector is still going through a bear market. But, the oversold conditions of the market portrayed by Williams Percent Range and other technical indicators suggest that cryptocurrencies have started the process of stabilizing in a low price range, which is beneficial for the mid-term growth of the market.

As expected, Tezos (XTZ), which experienced a 52 percent surge in price ahead of its mainnet release on Monday, experienced a minor retracement on its price, dropping by around 5 percent against the US dollar.

Nano, Qtum, OmiseGo, and Dragonchain, which recorded solid gains against Bitcoin earlier this week as Bitcoin neared $6,600, demonstrated losses in the range of 4 to 10 percent, struggling to show momentum in a lackluster period.

Generally, after a slight decline in price, a minor corrective rally occurs and major cryptocurrencies increase by small margins. But, the low volume of Bitcoin, which is currently at $3.3 billion, can be considered as a concern for traders.

Earlier this week, the volume of Bitcoin hovered at around $4 billion. In the past few days, the volume of BTC has dropped by 17.5 percent. In contrast, the volume of Ethereum has remained stable at the $1.7 billion mark.

Lack of Volume

If BTC fails to see a spike in volume in the upcoming 24 hours, BTC is unlikely to experience any major movement on the upside. ETH in contrast, which has seen decent gains in the past few days, is expected to continue its momentum on the upside, especially if it can maintain stability above the $220 resistance level, which it has not been able to achieve.

The next resistance level of Bitcoin is seen at $6,600 and $6,800, and BTC will need to comfortably break out of the two levels to achieve $7,000 in the short-term.

Featured image from Shutterstock. Charts from TradingView.

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Bitcoin Cash Price Gets Skewed due to Exchange Trickery

A lot of confusing action is taking place where the Bitcoin Cash price is concerned. Although its actual decline in value is quite obvious for everyone to see, the real price of BCH is not necessarily what people can see on Coinmarketcap. This is primarily because numerous exchanges treat BCHABC as Bitcoin Cash already despite nothing being decided in terms of which chain will be the longest. Bitcoin Cash Value Fluctuates Heavily Depending on where traders look at, the price of Bitcoin Cash will be either close to the $400 level or down to $250-ish. That is quite a large gap between prices, yet one that is also very easy to explain. Bitcoin Cash, as people knew it before the fork, no longer exists. Most professional exchanges have also retired this price ticker, for the time being. As the hash war rages on, there are still a lot of unknown factors waiting to be addressed. Despite this ongoing kerfuffle, there is a net 5.76% decrease in the Bitcoin Cash price, and a 5.4% decline over Bitcoin. More specifically, that is what CoinMarketCap reports at this time, although this is not necessarily the case whatsoever. In fact, some exchanges are clearly jumping the gun by labeling BCHABC as BCH and thus dragging the Bitcoin Cash price down a bit more. Exchanges currently engaging in this activity include Bittrex and Coinex, neither of which plays a big role of importance when it comes to trading. However, based on the current value of BCH on Bitfinex and Gate.io, it seems a similar incident is taking place. One also has to keep in mind Bitcoin Cash was getting battered ahead of the network split as well. Most exchanges have halted trading of BCH indefinitely, primarily because the currency no longer exists. It is evident either BCHABC or BCHSV will take over that name in the future, but nothing has been decided at this point. As such, any trading referring to just “Bitcoin Cash” or “BCH” should be avoided, as most users can never be sure which currency is effectively being traded under this name. All of this skews the picture pertaining to Bitcoin Cash altogether. Coinmarketcap reports there is still $392m in trading volume for BCH, even though that is virtually impossible right now. With so many exchanges freezing deposits and withdrawals, it is evident actual BCH trading is no longer possible whatsoever. Virtually all platforms have deposits of BCHSV and BCHABC frozen as well, which only makes this market trend more confusing. It is safe to say the entire network split has been a bit of a mess first and foremost. In the case of Bitcoin Cash itself, that name will – under the current circumstances- not be used across exchanges for much longer. Instead, the two separate camps need to be treated as such first and foremost. Until things settle down – with might not necessarily happen anytime soon – the Bitcoin Cash price itself is pretty much irrelevant for most traders and speculators. Disclaimer: This is not trading or investment advice. The above article is for entertainment and education purposes only. Please do your own research before purchasing or investing into any cryptocurrency. The post Bitcoin Cash Price Gets Skewed due to Exchange Trickery appeared first on NullTX.

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