Bitcoin price (BTC) tumbled below the $4000 level on Sunday after trading in the range of $4500 over the past week. The largest coin is under significant selling pressure; the analysts and market observers are yet looking at the reasons for the sudden collapse.
BTC price has lost almost half of its value compared to its price of $6500 two weeks ago. The largest coin plunged more than 80% from an all-time high of $20000 that it achieved at the beginning of the year. BTC price has hit the new yearly low on Sunday, and it is currently trading at the lowest level since August 2017.
Source:coinmarketcap.com
The selloff that was initially triggered by the trader’s disagreement over the bitcoin cash hard fork event has substantially impacted the overall business environment of crypto markets.
Bitcoin price selloff has wiped off more than $40 billion from BTC market cap in the past two weeks alone. Its total market cap plunged below $70 billion for the first time this year.
It’s Not the End of Selloff
The crypto market crash is likely to extend momentum in the days to come despite losing significant value in the past two weeks. Some analysts are expecting the coin to trade around $3000 before stabilization while other expects the crypto industry leader to plummet to $1500.
Genesis Trading CEO Michael Moro is among the analysts who don’t expect bitcoin price to hold around $4000 level for a longer time. Indeed, he expects bitcoin price to slide around $3000 level amid high selling pressure.
He said: “It’s really difficult. There are small levels of resistance, and we’ve seen the 4000 level get tested twice now in the last couple days, but I really don’t think there’s too much in the mid 3000s, so you won’t find much until you hit the 3k flat level.”
Bitcoin (BTC) Price Today – BTC / USD
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Meanwhile, Moro doesn’t expect bitcoin price to fall to zero. He says this is by no means a terminal decline for bitcoin; the expert is actually pointing towards trading volume. He says bitcoin volume dropped more than 60% compared to 2017 bull run; the total volume is still “multiples higher” than at the start of 2017. Consequently, he believes investors should look at the bitcoin in the context of a longer time frame.
$3000 Level is Imminent
The majority of crypto analysts are expecting bitcoin price to trade around $3000 after its price dipped below the physiological $4000 mark. Pompliano, the crypto trader and analyst, said that the psychological argument shows that there hasn’t been sufficient pain yet. He based his argument on historical perspective; the analyst claims that Bitcoin’s drawdown has been 80%+ in the past before regaining any upside momentum. Therefore, investors should keep an eye on all market reports and fundamental aspects before creating any position in crypto coins.
