In the newest round-up of crypto news, we are focusing on an in-depth Bitcoin analysis where all of the indicators show that the valuation of the crypto market has increased from $137 billion to $140 billion after a minor recovery of around 2%.
Both the major cryptocurrencies such as BTC and XRP, as well as the small cap tokens ended the day with relatively minor losses from 1% to 3%, while the volume of Bitcoin dropped from $5.5 billion back to $4 billion which is now a good indicator, especially since the selling action has minimized.
According to the cryptocurrency trader and economist named Alex Kruger:
“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.”
Generally, after a drop like this, major cryptocurrencies tend to recover in the mid-term as seen in the case of Ripple (XRP). A similar trend, according to analysts, could also be portrayed by BTC in the upcoming weeks if the asset begins demonstrating stability at a low price range.
Bitcoin is still down 78% from its all-time high which is relatively low when compared to the drop in the price of BTC from the all-time high in previous major corrections. For example, in 2011, 2013 and 2015, BTC recorded average drops of over 85% in every major correction that it experienced.
Still, the pressure from the SEC is high and the dozens of pending cases against initial coin offerings (ICOs) prove that the price of tokens is expected to drop in the weeks to come.
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