The new week has seen the bears make a massive move, wiping out more than $6 billion. The drop from major coins, led by Bitcoin, has seen most of them hit new year lows. Bitcoin dropped to a new year low of $3,350, a position it last took in mid-December.
Fortunately, Bitcoin has been able to bounce back from the new low after finding support and trade above. At the time of press, Bitcoin is knee deep in the red zone, dropping by over 3% and trading for $3,462.
The drop follows a 3-week stalemate, with bitcoin lacking a clear sign of intent to move upwards. The lack of momentum has been an invitation for the bears to come in and pull prices down. Today, they have responded. The early hours of the day saw the market wipe out over $6 billion, seeing the market drop to a little over $113 billion at the time of press.
Where Is The Bottom?
Prominent price analysts have been calling for bitcoin to bottom out below $3,000, a dangerous position that could see bitcoin never making a comeback. However, most believe this is a position that will attract institutional money beginning with Wall Street.
This movers and shakers will create a demand for bitcoin and sees it quickly make a turn for the better, hitting last year’s all-time highs. Regardless of what happens after further drops, what is clear with most predictions is that there is more pain in sight before any gain.
Ethereum Heading To $100
Among the highest losers of the day is Ethereum, which is down by over 10%. The drop has seen it plummet and drop far below $110, marking a new year low. At the time of press, Ethereum is trading for a little over $104 with no sign of a support position nearing.
Ethereum’s sell-off if persistent could see the coin drop to the $100 position with caution rising to avoid dropping below $100.
Since so far it doesn’t seem there’s been a catalyst that has triggered the cryptocurrency battering, the next couple of days should see prices attempt a reversal and see Ethereum climb close to $110 and bitcoin above $3,500.
In the meantime, the market continues to deter investors looking to get in on the market, that according to many experts, promises to be the year that it hits an all-time high.