During the past 2 days we saw the entire crypto market dropping to $13 billion from $15 billion. This happened as Bitcoin price went under $3,600. This might lead to a scenario in which BTC ends up with a price of under $3,000.
Analysts now show concerns about declining digital asset volume, with potential scenario of free falling without sell pressure coming from bears.
Will Bitcoin Go Down To $3,000?
The crypto market traders now expect a year that has low volatility. This is a reality that is true until the cryptocurrencies manage to escape the ending stage of a 1 year bear market that will be combined with an accumulation phase. However, during the short-term, traders do expect cryptocurrencies like Bitcoin to test various low-price range support levels.
According to Josh Rager, cryptocurrency trader, volume continues to go down and Bitcoin can end up seeing sideways ranging. It is possible that this can last for weeks until there is a decrease in the buyers, those that hold up the crypto market. There is huge support under $3,000, with many buyers that wait at that level.
At the moment, we saw a strong sell-off noticed on January 11. We see the crypto market that shows stability. However, crypto valuation went down $100 billion since the month of November 2017. Trend reversal signs are not demonstrated at the moment.
There is a clear momentum lack with cryptocurrencies and the dominant digital assets like Ethereum and Bitcoin do not breakout really important resistance levels. This is why 2019 has a high possibility of ending up as being filled with low volatility and quite boring.
After Bitcoin reaches the $3,000 level, it is possible to start a sharp recovery that would be triggered by really big buys on the major exchanges like Bitstamp and Coinbase.
Obviously, traders are not just interested in Bitcoin. In the event that the cryptocurrency goes under $3,500, the cryptocurrencies that have low daily volumes and market caps will, most likely, experience strong downward price movements.
There are digital assets that showed a really strong upward price movement during the last weeks, mainly because of protocol upgrades and product launches. This includes Ethereum and TRON. They also ended up dropping in value, mainly because the current negative sentiment that surrounds the cryptocurrency market, in the short-term.