Crypto market falls by $ 6 billion when Bitcoin drops to $3,350

In the last 24 hours, the Bitcoin price has dropped from $3,550 to $3,357 on the day’s low, by more than five percent. The abrupt decline in the Bitcoin price led the crypto market to lose nearly $6 billion within hours. Some major crypto assets including Bitcoin Cash (BCH) recorded losses of over 10 percent, experiencing the steepest decline in the month. Some analysts expect the Bitcoin price to drop to a new 12-month low following the short-term drop in the valuation of the crypto market. Since early January, for over three weeks, the crypto market has struggled to show a high level of volatility on the upside. Bitcoin maintained stability in a tight range between $3,500 to $4,000 from January 11 to 27, for 16 days.

Josh Rager, a cryptocurrency trader, said on January 28 that if the price of the dominant cryptocurrency drops below the $3,400 mark following two weeks of stability, a drop to its 12-month low is inevitable. “BTC continues to look weak. Eventually, alternative cryptocurrencies succumb to Bitcoin. If Bitcoin breaks and closes sub $3,445 area it will retest the 2018 lows If not, BTC continues its sideways action similar to the pre-capitulation at $6,000,” he said. The common narrative for a bullish price movement of Bitcoin in 2019 has been the start of an accumulation period subsequent to a long-lasting bear market.

If the price of Bitcoin drops to its 12-month low to $3,122 as some analysts foresee, the value of other major crypto assets and small market cap tokens will likely drop largely against both Bitcoin and the U.S. dollar. Already, Ethereum fell by more than seven percent on the day from $112 to $104, becoming dangerously close to dropping below the $100 support level.

Crypto Canarge: $6 Billion Wiped Out as Bitcoin Drops to $3,350; What’s Causing the Drop?, CCN, Jan 28