The collapse on the cryptocurrency market has resumed after a short-lived respite and $4,000 for BTC/USD may not be ruled out at this stage. The BTC/USD pair declined over 15% today hitting an intra-day low of $4294 refreshing new 2018 lows. As of writing this article, the pair is trading at $4484.5 down by 15.85% on the day. The coin has lost a quarter of its value in one week and dropped under weekly SMA100 for the first time ever. From the long-term perspective, it brings SMA200 (weekly) at $3,143 in focus. This is a critical support that might be reached once $4,000 gives way. On the upside, $5,000 remains the key resistance that needs to be taken out to bring some relief to the market and allow for an extended recovery towards the above said SMA100 at $5,825.
Bitcoin Likely To Hit $4000 During This week
This decline in Bitcoin and legacy crypto currencies is an uncharted territory and analysts believe that this phase will weed out unrelated participants like ICO projects and crypto investment funds that mushroomed during the crypto boom as bearish phase is likely to continue over extended period of time and there is high chance that the seasonal boost that usually happens at end of year may not come to pass this year. Such a situation will leave the market relatively stable as most participants who remain will be large scale investors, financial institutions with considerable investments and plans of how to move in future and loyalist with understanding of how market works and have stayed since the beginning which would see relatively stable market price action.
Switzerland based SIX stock exchange will see the debut of first crypto based ETP this weekend and the fund flow post the debut of said instrument and how market reacts to ETF debut in much await US market will decide the support level and future direction in which major crypto currencies move forward. Similar to Bitcoin, Ethereum also saw considerable losses hitting an intra-day low at $124.22 mark and has since rebounded and is currently trading at $134.77 down by 13.73% on the day. Crypto market has currently ended into a bottomless declining phase as major part of market which was made up of retail investors continue to pull out funds over fear of loss of investment and lack of solid idea of future of crypto market.