Bitcoin’s 24 hour price drop is the lowest we have seen in the past ten days, coming in at a negative 0.36%. While I wouldn’t be so bold to say that Bitcoin has found a bottom until we close in the green, stability for Bitcoin seems to be increasing in the $3800 to $4200 range.
Over the past 24 hours the crypto market has seen minor recoveries with 3 billion being put back into the market increasing from $137 billion to $140 billion. Most other major cryptocurrencies closed with losses of 2% or lower.
Where is the bottom?
Bitcoins volume has decreased over 25% in the past week dropping from $5.5 billion to $4 billion. What signals to analysts that Bitcoin may have found a bottom is that during the time when Bitcoin’s volume significantly decreased, its value decreased at a slower rate. This indicates that the sell pressure for Bitcoin has subsided, meaning the bottom could be near.
Prominent economist and crypto trader, Alex Krüger stated,
“Yesterday, BTC triggered my main oversold signal on the daily. This signal printed only once before: Jan/17/2015. Very close to a bottom that held for eight months, and was breached only once ever after, briefly, during the Aug/18/2015 flash crash.”
Bitcoin’s possibile stability level at $4,000 has been tested twice over the past few days indicating that a significant drop below $4,000 is unlikely. While hodlers and investors are eager for Bitcoin’s value to increase once again, it could be weeks or longer before Bitcoin experiences a corrective rally.
Bitcoin has experienced major price corrections in 2011,2013 & 2015. During each correction Bitcoin experienced an over 85% drop in value. At this time, Bitcoin has only experienced a 78% which is comparatively low.
What about at the other coins?
While Bitcoin ofcourse hogs the crypto spotlight, it is still one of the best performing cryptocurrencies in the bear market. The Binance coin and VeChain are also exhibiting good performance loosing on 78% or less from their all time high.
But the good news ends there as most other cryptocurrencies are laying on virtual deathbeds when it comes to their value. While some other cryptos may have been experiencing short term stability, that stability has since been lost.
At this time, the average drop from all time high for most tokens is around 98%. Some cryptos are still experiencing double digit losses, and the end is nowhere in sight.
Even if Bitcoin has found it’s bottom, the SEC moves to destroy the value of all ICO tokens. The SEC is currently investigating into multiple ICO’s and already has pending cases against others. With this movement from the SEC, it’s expected that the value of ICO tokens is only going to continue to drop.