Crypto Trading Volumes At 8 Months Low
The crypto market has lost $5 billion over the past 48 hours. Most major cryptocurrencies including Bitcoin have declined by 1 to 2 percent but did not demonstrate any major movement on both the upside and downside.
Crypto prices have fallen so much Tether is now nearly in top ten. Tron used to be $14 billion once, now reduced to $2 billion. Bitcoin saw $300 billion, while Ripple once was above bitcoin’s current market cap.
While Bitcoin Cash rose above $3,000. That makes it above ethereum’s current market cap, but since ethereum has barely moved it actually overtook its market cap at the time too. Ethereum, the most promising invention since bitcoin, has effectively seen no price change since last year. It was in the $400s, it is in the $400s.
EOS is the outlier. Its current market cap is near the highest it has ever been following a period of some spring frenzy that then gave way to a clown-show.
The daily chart of BTC shows that the volume of BTC is at its yearly low. Even during February, when BTC dipped below $6,100, the volume of BTC was substantially higher than the current volume of BTC. Since June 13, BTC has been able to sustain a short-term corrective rally from $6,100 to $6,450, but due to the low volume of BTC, a drop to the lower end of $6,000 in the upcoming days can be expected.
Currently, 50, 100, and 200 moving averages demonstrate that bears are still in control of the Bitcoin market and if BTC falls below the $6,300 mark in the next 24 hours, a dip below the $6,000 mark is inevitable. But, if BTC sees an abrupt increase in volume and rises to $6,700 in the short-term, a rally to $7,000 is a possibility. Based on the state of the market, a drop to $6,000 is more likely than a short-term recovery to the higher end of $6,900.
Current emotions are down and most investors in despair. The chart of BTC in 2018 has a 2014-esqe trend, primarily because the market experienced the eruption of the same bubble it had seen four years ago; the bubble of retail and individual traders. If BTC follows its price movement in 2014, it is likely that BTC drops to the lower end of $5,000 and experience a parabolic upward swing in the mid-term.