It is no surprise that the valuation of the cryptocurrency market is falling. As cryptocurrencies like Bitcoin, Ethereum, Ripple and Cardano decline, the total market capitalization has also declined with the market losing about $9 billion within just 24 hours. Each of the cryptocurrencies mentioned above have lost between 2 to 5 percent of their value.
On the 7th of June, reports from smarttest.wpmudev.host was that the market capitalization was stable since the top cryptocurrencies traded around the same region over the past month. Normally, a short term stability can lead to an upside break or a bleed out. Within the last 24 hours, Bitcoin has dropped from $7,700 to $7,550 losing all the gains it accumulated in June 7 which put an end to the short-term recovery which was heading to $8,800.
If Bitcoin doesn’t rebound to $7,700 within the next few hours of trading, it may break below $7,000. Holding the significant support above $7,400 is crucial to the short term success of Bitcoin.
Bitcoin Price Predictions
Last week, many prominent investors predicted that Bitcoin was going to break upside this week. This is including Peter Brandt who predicted that this week will be marked with upside breaks. Unfortunately, these predictions were based on the assumption that Bitcoin’s volume would recover short-term. Over the last two weeks, Bitcoin’s trading volume has been low compared to what it was in the early months of 2018.
With the low volume short-term, Bitcoin and Ether have fallen greatly against the USD. Many traders believe that Bitcoin will soon start a strong rally which will be marked by a hike in price and volume. However, short-term investors do not feel the same way. The market is in a vicious bear cycle which is partly related to low trading volumes.
Bitcoin isn’t the only token struggling. Even some altcoins that increased in price over the last few months are now struggling to retain their gains. If the fall continues, tokens will suffer more than the major cryptocurrencies.