Bitcoin Falls under the $5,600 Threshold for the First Time in a Year
The week has not treated Bitcoin or any of the top altcoins kindly. Whereas a few days ago, technical indicators were pointing up for the world’s premier cryptocurrency, now it has collapsed in spectacular fashion, leaving investors and the whole community in the dark wondering what is happening and what the future may hold.
After surpassing the $6,500 threshold last week, Bitcoin’s price has behaved strangely in the past couple of days, mostly going downwards. At one point near noon (Eastern Time) it had collapsed all the way down to $5,563, almost a 10% loss in the last 24 hours (the precise number is 12.98 percent.)
The figure is, by far, the lowest of 2018. In fact, it is the lowest reported price number since November 11th, 2017. It has been a roller coaster ride with Bitcoin over the last few weeks, but Wednesday has been a worrisome day as the sessions opened at $6,297.96.
Investors React to the Latest Decline
The huge fall in price has caused investors to sell their assets as a reactionary measure, and other altcoins have suffered the same fate. According to the data site OnChainFX, some digital assets have experienced more than 20% losses in the last day. A couple of them are MANA, BAT, and DNT.
The total market cap in the industry experienced a heavy loss in the last day, with more than $24 billion gone in the last 24 hours. And with uncertainty surrounding the industry, Wednesday crisis could keep worsening.
There are no current developments or piece of news that can be directly signaled as the primary causes of the price decline. Now, experts within the industry are in agreement with the future bearish condition of the market to continue beyond 2019.
“Putting together the blockchain view, I suspect the timing for a bottom may be around Q2 2019,” those were the words of Willy Woo, who currently functions as the creator of the Woobull site, also stating that a “long grind upwards” will only take place after a true accumulation band.
Altcoins were also Heavily Affected
The Bitcoin industry developments were not alone this Wednesday, as the sad picture was accompanied by the performance of some of the most prominent altcoins. The case of Ethereum (ETH) was notable, as it had gone all the way down to the $180 range at the time of writing this piece. The top altcoin was trying to sustain its value between the $200-$210 range, but now has to climb out of a hole.
The case of Bitcoin Cash (BCH) also has the added circumstance of the upcoming November 15th hard fork. The token reversed recent gains, reaching $433.34 at press time, which means a drop in value of 18.07 percent.
NEM (14.95 percent), Ripple (-11.43 percent), Stellar (11.51 percent), EOS (14.49 percent), Litecoin (12.61 percent), Cardano (14.07 percent), Tether (1.05 percent), Monero (13.19 percent), Tron (14.91 percent), Dash (12.09 percent), and the rest of the top 20 cryptocurrencies by market cap, including IOTA, Binance Coin, NEO, Ethereum Classic, Tezos, Zcash, and VeChain lost value on Wednesday.
By Andres Chavez
