Although there are many cryptocurrencies in the digital currency market, Bitcoin is known to take the lead. Unfortunately, the value of this currency has been falling drastically since 2017, recording a drop by close to 80% the same year.
Bitcoin (BTC) is on the defensive after a drop to six-week lows and could soon test crucial long-term support below $3,300.The cryptocurrency fell to $3,322 – the lowest level since Dec. 17 earlier today – bolstering the bearish view put forward by Monday’s high-volume range breakdown. Trading volumes jumped to 18-day highs near $7 billion yesterday, according to CoinMarketCap data. The high-volume sell-off has likely opened the doors to re-test of December lows near $3,100.
The report shows that bitcoin is currently trading at $3,380 on Bitstamp, which is about 1.5% less than the value recorded in the last 24 hours.
“Sitting in the last buy zone before new lows. Cut some of my buys due to the breach of the top of the zone. Looking to re-add them if it is reclaimed. If green fails ($3,300) I expect a quick move into the $2,000s. If it holds $4,000 is on the cards,” the analyst said.
Bitcoin also could avoid a drop below the $3,000 support level if it engages in a recovery to $4,000 but based on its past performance and the lack of momentum of major crypto assets, it remains unlikely that Bitcoin initiates a strong corrective rally in the short-term without a major catalyst.
As at now, crypto traders aren’t sure about the likelihood of the value coming back to $4,000 or above the value – just like it was in 2018.
“Bitcoin bear markets don’t end when the market indicates that there is a bottom. They typically end when the market indicates that there is no bottom,” Lingham tweeted previously.
“The reality is that crypto needs real adoption and use cases,” Lingham said in a recent interview. “Until we have that we’re not going to have another bubble. The speculative mania is over. People want real numbers and usage and transaction volumes.”
The report suggests that the drop in value could possibly because of lack of serious adoption and reliable use cases.
We’ve seen the value of Bitcoin rise and fall, with the fall making a stronger impact than the former. Currently valued at just $3,400, from around $20,000 in December 2017, Civic CEO warns that crypto winter could turn into crypto nuclear.