Decline of Bitcoin and Ethereum Causes a Drop in Cryptocurrency MarketApril 8, 2018
The past week shows bitcoin and cryptocurrency market to be consistently unstable along the $300 billion area. It has been continuously moving up and down between $280 billion and $350 billion. This volatility led the market to operate throughout the month of March within only this range. Over the past weeks, the cryptocurrency had difficulty in showing signs of a strong recovery.
To show a strong enough rally, analysts say the market must reach the $11 000 region. However, the market has yet to sustain a momentum. Both bitcoin and Ethereum is unable to show a good indication of recovery throughout the whole month of March. The cryptocurrency market will likely remain unstable in the days to come.
Although the cryptocurrency market is volatile, it is interesting to note that it has not risen or fallen for the past days. It remains in its previous levels, only moving up and down in the $280 and $350 billion range. While the major currencies are struggling, a number of several alternative cryptocurrencies actually got past them on particular days.
Two of these cryptocurrencies are 0x and Ontology, which was able to do better than bitcoin and Ethereum likely because of a temporary thrust in the market. For most of the time, however, the market moved altogether. Major cryptocurrencies such as bitcoin, Ethereum, Bitcoin Cash, Ripple, Cardano, and EOS all move in the same upward and downward movements.
As of March 28, bitcoin showed a strong selling volume. Its price struggled to stay at $8200 but dropped to $7,750. After the drop, it did recover to the price of $7850. Unless there is a big spike in cryptocurrency’s buy volume, there is an unlikely chance of the price going back again to $9000. There have been bans on cryptocurrency ads on several platforms such a Twitter and Facebook.
The media is quick to rationalize the retreat in cryptocurrency’s price on the ban of cryptocurrency ads. However, there is no correlation between the news and the price movement. According to experts, if it really was the news that caused the movement, then the drop and recovery must be after the event happened. This is not the case with the current price movement in cryptocurrency market.
The unstable movement within the cryptocurrency market has been happening over the last few months. Analysts in the industry say that the market has difficulty recovering from a 72% correction, the third largest correction for bitcoin as of date. Just like any other market, the cryptocurrency market is probably going to decline for months before it began to convene again after a huge correction.
Based on the market’s existing volumes, there is a slight possibility that the market will recover soon. Everyone can only expect that within the next few weeks, the market will still be extremely volatile. The market will remain so until a big momentum will occur. If that happens, there can be a spike to the buy volumes and then the market can start recovering.