Traders cautious as Bitcoin plunges!
December 10, 2018 8:04 am,
Bitcoin fell to a low about $3210 on fiat to cryptocurrency exchanges, leading to other major cryptocurrencies and low market cap digital assets to fall by around 15 to 20 percent against the US dollar.
Since then BTC has rebounded from $3210 to $3455 by more than seven percent within merely 12 hours. However, traders are cautious in regards to the short-term price trend of the dominant cryptocurrency given the intensity of its recent fall and the volatility the market has shown throughout the past two weeks.
The crypto market has added $5 billion to its valuation, demonstrating a slight recovery from $106 billion to $111 billion. Despite the recovery of the market, Ethereum and BCH continue to fall in value, both recording a three percent drop against the US dollar.
ETH price fell by around three percent from $97 to $93, failing to sustain the short term momentum garnered from the recovery it experienced on Saturday. Since its daily peak, ETH has declined by more than six percent against the US dollar, from $100 to $93.
Last week, fuelled by the corrective rally of BTC, major cryptocurrencies in the likes of Ripple (XRP) and ETH recorded gains in the range of six to nine percent with ETH rebounding to $115. The cryptocurrency market has added $11 billion to its valuation and tokens such as VET or ZIL have recorded gains of around 15 to 20 percent.
These whales now over 20 million ETH, roughly 20 percent of ETH circulating supply. This represents a four-fold increase in ETH held by top cryptocurrencies since January 2017, when they owned just 5 million ETH.
Bitcoin Cash (BCH)
BCH has also demonstrated a weakness in its short-term price trend as it lost nearly half of its value within a two week period. Since November BCH price declined from $200 to $100 by exactly 50 percent.
Token market collapse!
The gap between the ETH and XRP, which recently took over ETH as the second most valuable cryptocurrency in the global market, has increased more than $3 billion within a three-week support. It is possible that as investors in the cryptocurrency market resort back to fundamentals, cryptocurrencies that have struggled to see a noticeable increase in accessibility, adoption and usability are falling harder the BTC.
Positive developments continue to surround the cryptocurrency market, yet the prices are falling at a rapid rate with BTC remaining below a major resistance level at $3700 and failure to break out of it could result in asset remaining in a low price range between $3000 and $3500.