It’s not the first time to see a demeaning trend in the crypto market. But Bitcoin has been losing its value lately – perhaps than never before – with the valuation dropping to $6,000 in more than 2 weeks. The 6% drop puts the crypto market in its worst days, beginning June 22, 2018.
A report released by Bloomberg reveals that the biggest losses were recorded starting Wednesday, June 22. And the crypto market has been on its worst course since then.
Rallies in digital tokens have been rare this year, with momentum lacking as apathy with last year’s hottest asset class grew. The currencies have struggled to retain speculator interest as a mania that saw Bitcoin rise 1,400 percent in 12 months appeared to have run its course.
The drop in value has been heavily attributed to the lack of interest in crypto trade, which is something that’s happening for the first time in a year.
According to CCN, the previous crypto market value stood at $227 billion. There has been a steep decline to $252 billion, recording a 7% fall in the value of the crypto market.
The valuation of the crypto market has dropped by $20 billion over the past 24 hours, as bitcoin dropped to $6,400.
Since early morning, the crypto market recorded a steep fall from $274 billion to $252 billion, demonstrating a 7 percent decline in value. The drop of bitcoin from $6,700 to $6,400 caused other major digital assets and small tokens to experience intensified movements on the downside.
The decline is linked to the drastic drop of Bitcoin’s value, which is now 5% less of the actual value 24 hours ago.
Now that Bitcoin’s price has drastically dropped, Coin Desk argues that the crypto market could suffer losses in the next few days.
The leading cryptocurrency looked vulnerable to a pullback 24 hours ago, courtesy of the signs of bullish exhaustion near key resistance of $6,800. Hence, the drop to $6436 seen today is not surprising, but has certainly boosted the odds of a close (as per UTC) below the all-important 10-day moving average (MA).
It is worth noting that the short-term moving average is still biased to the bulls (rising). So, as discussed yesterday, a strong defense of the 10-day MA support would reinforce the short-term bullish outlook and could yield a rally to $7,000.
Unless the technical chart indicates the bulls effort to defend the key moving average support, this prediction might just come to pass.
It wouldn’t be difficult to say that the crypto market isn’t building on gains. But the recent development shows a big interruption to the growth, yet hopefully traders might not be calling it a quit at the moment.