Bitcoin Price Analysis: BTC/USD’s 2018 Decline Is Far From Over

Marcus Newton
November 21, 2018

"The bitcoin cash hard fork is proving far more destabilising than initially thought as numerous competing factions muddy the landscape", Oanda Corp's head of trading for Asia-Pacific, Mr Stephen Innes, said in a note.

The value of Bitcoin slipped Monday below $5,000 for the first time since October 2017 and on Tuesday was trading close to $4,500. Most cryptocurrencies have experienced greater than 10% decline, and ETH tops the list with a whopping 29% decline in the last week, as reported by CoinGecko.

Other cryptocurrencies were also down including Ethereum and Ripple. At the end of previous year the currency flirted with the limit of 20,000 dollars.

By 11.45 a.m. ET, the benchmark cryptocurrency was trading lower by around 8.5% at $5,164, having rebounded a little from the worst of the day's trading, according to Markets Insider data.

The tumble that bitcoin suffered helped drag other altcoins down too, with Ethereum falling to $152, representing a 10% decline and the lowest level the cryptocurrency has reached in the last 16 months.

This is related to increasing enforcement by United States and European government authorities, as well as a new "fork" that further splinters the digital currency. The latter two are now racing against each other to secure the higher position and prove themselves as the better versions of the parent coin.

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For example, digital assets such as Monero (XMR), Tron (TRX), Dash, Iota and Binance Coin (BNB) have recorded an average daily drop of around 16pc. Then, in the early hours of Tuesday, Bitcoin sank as low as $4,200, a price we haven't seen in more than a year. The SEC ruling last week - that two ICOs were securities - will affect Ripple as many think that XRP should already be classified as a security.

The crypto markets entered a major correction on Monday while losing $25 billion market cap for the second time in last one week.

Bitcoin Atom (BCA) traded down 1.2% against the dollar and now trades at $0.22 or 0.00003965 BTC. Less than a week ago, Ethereum was still worth more than XRP.

"It does rather look like the bottom is coming out of this market".

Neil Wilson, chief market analyst at markets.com, said there was growing evidence of a potential link to the wider tech sector's woes as the so-called FAANG stocks come under renewed pressure.

"There's a small chance that, it's hard to estimate, that something really bad could happen related to Bitcoin Cash that could then impact the entire crypto market". Now Bloomberg intelligence, the asset analysis service by Bloomberg, predicts that the price of Bitcoin could fall even further.

Other reports by MaliBehiribAe

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