Over the past forty-eight hours, the value of Bitcoin (BTC) has been on a continuous downward trend. The volume of the entire digital currency market has dropped significantly. The value of Bitcoin (BTC) plunged sharply recently, and it is now trading below the $3,600 mark.
However, what is creating more worry in the crypto space is the decline in trading volume. Analysts are showing concerns about the plunging volume of digital currencies as well as the potential scenario of the free fall of digital currencies without major sell pressure from bears.
The daily trading volume of Bitcoin (BTC), which used to be around $4 billion to $6 billion, is now down to $2.5 billion. The volume of the digital currency market has also plunged to $13 billion from $15 billion over the past 24 hours.
Will Bitcoin (BTC) Test the $3k Level?
Generally, traders and investors in the digital currency space expect a year free of volatility, at least until digital currencies overcome the last phase of a twelve-month-long bear market and start a strong accumulation phase. Nevertheless, in the near-term, a lot of traders envision most digital currencies including BTC testing major support levels in a low price range.
According to a recent tweet by Josh Rager, a digital currency trader, “As the trading volume continues to descend slowly, Bitcoin (BTC) could see more sideways ranging. This could last for a day or even weeks until a decrease in buyers, presently holding up the market, at these levels. Nice support below the $3k level with a lot of buyers waiting there.
At the moment, after an intense selloff on the 11th of January, the valuation of the entire crypto market has been showing a little bit of stability within the range of $122 billion and $124 billion. However, the overall market cap of all the digital currencies in the market is down by about $100 billion since November 2017, and all cryptos are struggling to show signs of recovery.
Considering the inability of top digital currencies such as Bitcoin (BTC) and Ethereum to breakout of crucial hurdle points and the lack of momentum in the crypto space, DonAlt – a crypto analyst – said that this year might turn out to be a low volatile and boring year.
As the value of Bitcoin (BTC) falls towards the $3k level, similar to its corrective run in December last year, it may start a sharp reversal trend pioneered by big buy walls on top digital currency trading platforms such as Bitstamp and Coinbase.
Other Cryptos Are Also Affected
Bitcoin (BTC) is somehow tied to other digital currencies in the crypto market. Whenever the value of Bitcoin surges higher, other digital currencies will follow suit. When Bitcoin plunges, the same trend repeats itself. If Bitcoin (BTC) continues to fall towards the $3k level, other coins in the market are expected to experience intensified downward trends against the US dollar and Bitcoin.
Bitcoin (BTC) Price Today – BTC / USD
At the time of writing, Bitcoin (BTC) is changing hands at $3,601 after a decrease of about two percent over the past twenty-four hours. Bitcoin (BTC) currently has a market cap of $61.82 billion and its trading volume over the past twenty-four hours is $2.82 billion, which is relatively low compared to its trading volume late year and early this year.