Bitcoin (BTC) Plunges Under $8,000 Again
After gradual weakening on the weekend, BTC is once again threatening to make new lows in the last quarter of 2019.
Bitcoin (BTC) started sinking under $8,000 again on Monday, after a relatively weak weekend. BTC slid to $7,962.57, on slightly higher volumes above $13 million. The past weekend failed to follow the pattern of price boosts due to low volumes, and BTC starts to look more bearish.
BTC now sees renewed predictions of sliding to new lows. The BTC market has been generally bullish in 2019, with downward swings that turned more confusing. Now, BTC is headed for bearish territory after a moving averages cross.
Another sign of weakening activity and enthusiasm is the lowered number of on-chain transactions. Activity droppe, from above 800,000 transactions per 24 hours, to about 690,000 transactions. Usually, heightened on-chain transactions and big “whale” movements precede upward runs in prices.
Overall, the market braces for new lows, although derivatives markets may sway the price. A call has been made for new lows around $6,600:
If such a scenario happens, BTC will return to the price levels from the fall of 2018.
Currently, BTC sees 67% of its volumes against Tether (USDT), with the share of the US dollar low at about 10%. The price discovery for BTC is still dependent on a wide array of crypto-to-crypto exchanges, with lowered institutional interest noted.
However, the uncertain BTC market price is no hamper for miners. Over the past weekend, BTC mining reached another peak at above 102 EH/s, before returning to a still robust level of 93 EH/s.
BTC remains highly unpredictable, and a rally is not out of the question. The recent price slide created expectations for revisiting $7,500, with the possibility for another big rally.
The behavior of BTC may also depend on the decision of Tether, Inc. to mint more USDT, or for traders to use the existing USDT in circulation. Currently, each USDT coin circulates four times throughout exchanges each 24 hours. But USDT has reached a turnover of 1,000% during peak BTC trading.
Neither the author nor the publication assumes any responsibility or liability for any investments, profits, or losses made as a result of this information. Cryptocurrency trading and investing are risky propositions, and market participants are advised to always conduct thorough research.