Earlier today the cryptocurrency markets plunged after Bitcoin failed to stabilize above $4,000, a price level that bulls had ardently defended for multiple days. Analysts are saying that the recent move down is not fundamentally or technically driven, and is most likely the result of an incursion of selling pressure from bears.
Following this recent drop, Bitcoin is now trading down slightly from where it began 2019, and it is looking increasingly likely that the bear market is far from being over.
Bitcoin Drops Nearly 10%, What Analysts Are Saying
At the time of writing, Bitcoin (BTC) is trading down 9% at its current price of $3,675, down from its recent highs of $4,100 and down slightly from where it started 2019 at approximately $3,800.
Mati Greenspan, the senior market analyst at eToro spoke about the drop in a recent note, saying that there is nothing in particular driving this drop.
“Many have been asking about the sudden drop in the crypto markets this morning. In my view, there doesn't seem to be any real reason for this drop, neither technical nor fundamental. The one interesting thing about this movement is that it seems to be an exact reversal of the surge that happened on Sunday afternoon. At this point, the gains made since the start of the year have now been reversed and we're back to a neutral 2019,” he explained.
Lisa N. Edwards (@LisaNEdwards), a popular cryptocurrency analyst on Twitter, spoke exclusively to Covesting about the current market conditions, noting that although the current price action looks negative, Bitcoin should end February “around $5800,” and further added that there will likely be other corrections "later this month.”
Alex Krüger, an economist who focuses on cryptocurrencies, also discussed the drop in a recent tweet, saying that he believes the $3,500 to $3,600 range is a good buying area.
“What a majestic dump. $BTC back to my buying area of 3500-3600. Below 3300 exit and reassess. I'd like to see BTC ending the day above 3700. Consolidation below 3600 (bottom of prior area) would tilt the balance towards further downside,” Krüger explained.
Altcoins Drop 10% or More
The altcoin markets have reacted severely to Bitcoin’s latest drop, with most major altcoins dropping 10% or more.
XRP has once again retaken the number two spot by market capitalization, and is currently trading down 11% at just over $0.33.
Ethereum (ETH) has dropped 15% and is currently trading at $128.5, down significantly from its weekly highs of $160.
Bitcoin Cash (BCH) is one of the worst performing altcoins today, and is currently trading down nearly 17% at $134.