In a fresh dip below $60K, Bitcoin has been steadily declining in the last few days. In the last five minutes alone, it dropped by more than $1K from its latest price of about $58,000 to trade at around $57,000. As the cryptocurrency market continues to turn bearish amid growing regulatory pressures and uncertainty across global markets, some analysts believe that this is just a temporary move for now and could find support again soon near-term.
Bitcoin prices remain subdued throughout the Asian trading session Wednesday and, at press time, has remained under $60K for about a week now. This decline comes after the cryptocurrency soared to all-time highs of over $20K in December 2017. The lack of momentum so far this year could be signalling an emerging bottom in the market as BTC effectively floors.
Bitcoin is currently trading around $5,563 at press time with its immediate support located at the descending trend line , which originates from the high of $19,891 and connects to $6,065 low. From here, BTC could establish a floor for now closer to $5,000 and recover from there.
The second line of support is located at $5,400 and originates from the low seen on December 22nd 2017. After that, near-term resistance arises around $5,700 (daily high) followed by the round number of $6,000 ahead of the next key level at $6,935.
As discussed yesterday, the current retracement in bitcoin prices is currently around 50 percent , which happens to be a very usual technical correction for this cryptocurrency. Therefore, it leaves BTC susceptible to further declines below $5,000 but does also open up upside to new all-time highs fairly quickly.
Many analysts believe the current price action in BTC is a temporary movement and could find support at $5,400 or even around $5,000 before seeing another surge in prices. It’s also worth noting that bitcoin was trading just below $6,000 on Tuesday evening March 27 , which many consider a key psychological level for the market.
Other cryptocurrencies are seeing similar price movement today, but on a much smaller scale than BTC. Ethereum (ETH) is currently trading around $166 with its recent lows of $152 seen just below $170 yesterday afternoon. Ripple (XRP), the world’s second largest cryptocurrency by market cap, is down over 3 percent to trade at $0.37 per coin.
Bitcoin price decline on March 28, 2018 (coincaphase) [ Image Source ]
Interestingly, the top ten cryptocurrencies by market cap are all down in value with most of them seeing less than 3 percent losses on a daily basis. The exception is Ethereum Classic (ETC) which is up around 11 percent to trade at $15.25 per coin.
The top twenty is also filled with similar movements but, for the most part, with lower highs and lower lows than their counterparts in the top ten. Bitcoin Cash (BCH) is currently trading around $508 with its recent low of $460 still visible on the daily chart .