Bitcoin is currently trading around $ 6600. $ 6500 is the nearest support which it has. The problem is that it has been stagnating at the current levels for the past couple of days. If indeed, these levels are broken, it will head down by at least 15%. This will be a huge technical breakdown for Bitcoin. Moreover, there are not a lot of buyers even at the current levels. This clearly indicates that there is no momentum in Bitcoin. At the current levels as well, Bitcoin is down by almost 65% from the peak. Still, there are no takers for Bitcoin.
On the other hand, when you look at the cryptocurrency tokens apart from Bitcoin, you will realize that most of those cryptocurrency tokens are falling consistently as well. Ever since Bitcoin futures have been launched, the prices of tokens is just going down. The cumulative market cap of all the cryptocurrencies is also moving downwards. That is why the downturn is not just in a single cryptocurrency.
According to a cryptocurrency expert, if it breaks the $ 6500 mark, it will head even lowered to $ 5500. This is the bottom which it had made quite recently in the current downturn. If indeed, it is not able to hold that bottom as well, then there is no limit to the fall. This is what is scary most of the cryptocurrency investors away. They do not want to invest in a asset which is in a freefall mode. They want to 1st test the stability of Bitcoin and thereafter think about investing in the same.
Also, many experts think that the consistent onslaught of most of the governments as well as authorities on Bitcoin as well as other cryptocurrencies is causing problems. As a result, there is simply no moment in Bitcoin. In addition to that, investors are getting scared away from Bitcoin and other cryptocurrencies due to the onslaught by the government.
The high of $ 20,000 which it made just 5 months back now seems like a distant dream. Even the most optimistic predictions are not predicting it near those levels in the next few months. As a result, many of the investors are actually trapped. Investors who have invested at the higher levels are just waiting for a respectable price to book their losses. This is further capping the gains whenever there is a relief rally.
With Bitcoin trading around crucial levels, investors will also keep an eye on other cryptocurrencies.