Bitcoin Price Falls Below $4,000 Again Wiping Out Weekend Gains
Crypto markets are back down again today after recovering a little over the weekend, Bitcoin is in the red, steadily descending below the $4,100 mark, down almost 4 percent. At press time, Bitcoin is trading at $4,087.
At first, many thought BTC was going to hold $4,000, as the market tried and failed to breach the aforementioned level of technical and psychological support.
The prominent market analyst is doing their best to calm investors’ qualms, by stating that, we’ve been down this road before.
Major cryptocurrencies including Stellar (XLM) and Bitcoin Cash (BCH) lost around 6 percent in value on average, demonstrating a lack of momentum and trading activity.
The drop in the volume of BTC as its price fell by nearly four percent in the last 12 hours suggests that the asset is showing low momentum without much strength at the $4,000 support level to sustain a positive short-term price movement.
Under normal circumstances, during a downtrend, the volume of BTC tends to spike up as more sell orders hit the market.
A technical analyst with an alias “The Crypto Monk” stated that if BTC sustains the $4,000 support level in the next 12 to 24 hours, then a rebound to the $4,200 to $4,400 range is possible. But, if it falls below $4,000, and it was close to doing so earlier in the day, another short-term correction could be in play.
Analysts at U.K.-based research firm FX Pro Insights said the selling above $4,000 is most likely short-term traders booking some profits. “The real question is: Has the crypto market indeed reached the bottom?” they wrote.
Based on the price trend of Bitcoin throughout the past two weeks, a new monthly low could be reached if BTC falls to $3,000.
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