Christmas shows bloodbath for the crypto market; Bitcoin price dropped more than 3%
Bitcoin price is currently plummeting despite the expected increase in momentum, as many countries are conducting digital currency research. Bitcoin is now down to the lows of last week, trading around $ 7,200, down nearly 3% on the day.
Bitcoin price plummeted
Bitcoin price is likely to bottom out. Overall, Bitcoin is still in a downtrend from its yearly high of $ 13,900. Also, a wick inside the green zone and the golden pocket Fibonacci ratio (area 0.618 – 0.65) created intense buying pressure. This led to a recovery from last week from $ 6,430 to $ 7,690.
Bitcoin 2-days chart | Source: TradingView
The green area can be considered as a significant support area because the price of Bitcoin bounced off the $ 6,000 area many times in 2018. Besides, Bitcoin was trapped in a tight range before the significant drop to $ 3,100.
It is highly likely that Bitcoin will form a bottom inside this green zone and will take this critical support/resistance level as a launching pad for a new up move.
The Altcoin market is also wobbly
Meanwhile, the market’s second-largest cryptocurrency, Ethereum, is trading at $ 127.41, down 2% on the day. ETH opened the session at $ 133.17, recording a 4% decline for the week.
The third-largest altcoin market, XRP, is trading around $0.189, down 2% on the day. Bitcoin Cash, Litecoin, and Binance Coin (BNB) recorded a decline of 2.6%, 3.4%, and 2.9%, respectively.
Cardano is the brightest name at press time. Although it only increased slightly by 1% during the day, this is still the only bright spot in the current market.
With such volatility, the cryptocurrency market capitalization is maintained at $ 189 billion.
Other information around the market
In a report called “Imagine 2030”, Deutsche Bank’s strategic analyst Jim Reid highlighted the challenges faced by fiat systems in recent years. Especially when the emergence and steady development of cryptocurrency.
“The need for an anonymous and non-physical payment system is likely to be the catalyst that brings users to cryptocurrencies.”
To gain full acceptance, a cryptocurrency needs to overcome three significant barriers:
- Support or at least not prohibition by governments and regulators.
- Price stability.
- Accessible on a global scale in the payment market.
Meanwhile, governments around the world have been actively debating the need for CBDC development.
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