Crypto Carnage: $ 6 Billion erased as Bitcoin Drops to $ 3350 - What Causes Drop?

In the last 24 hours, the price of Bitcoin has dropped from $ 3,550 to $ 3,357 at today's low, more than five percent.

A sudden drop in the price of Bitcoin lead crypto market lost almost $ 6 billion in a few hours. Several major crypto assets including Bitcoin Cash (BCH) recorded a loss of more than 10 percent, the steepest decline in a month.

Some analysts expect the price of Bitcoin's fell to a new 12-month following a short-term decline in the market valuation crypto.

FACTORS IN THE REDUCTION OF THE PRICES Bitcoin

Since the beginning of January, for more than three weeks, crypto market has struggled to demonstrate the high degree of volatility on the upside.

Bitcoin maintain stability in a tight range between $ 3,500 to $ 4,000 from January 11 to 27 for 16 days.

A sudden drop in the price of Bitcoin and other crypto assets may have been triggered by technical factors rather than fundamental.

Josh Rager, a trader cryptocurrency, said on Jan. 28 that if the dominant cryptocurrency price fell below the mark of $ 3,400 after two weeks of stability, decreased to lower than 12 months can not be avoided.

"BTC continues to look weak. Finally, alternative cryptocurrencies give Bitcoin. If Bitcoin break and close the sub $ 3445 it will test the 2018 area lows Otherwise, BTC continued its sideways action similar to the pre-capitulation at $ 6,000, "he said.

Common narrative for bullish price movement of Bitcoin in 2019 was the start of the accumulation period subsequent to the long-lasting bear market.

However, many analysts explain that the accumulation period does not always lead to a medium-term rally.

An economist and analyst cryptocurrency Alex Kruger stated:

For someone to collect, others have to distribute. This is a zero sum game. Accumulation per se are not bullish or bearish. With trading volume today, I'd bet on the stock and current miners 'collect'. Eventually they will likely start throwing again.

fundamental indicators such as the volume of transactions Bitcoin network, which is an average of 280,000 transactions per day, and the use of decentralized application (DApps) protocol smart contract has shown a recovery since late 2018.

Given that a tight price range where most cryptocurrencies relatively stable for weeks has been broken, the volatility to the downside is expected in the coming weeks.

If the price of Bitcoin fell to 12-month low to $ 3122 as some analysts predict, the value of assets and other major crypto token small market cap is likely to fall largely to both Bitcoin and the US dollar.

Already, Ethereum down more than seven percent on the day at $ 112 to $ 104, becoming almost fell below the support level of $ 100.

A trader cryptocurrency the online alias "The Crypto Dog" shorted Ethereum in early January suggesting that the Ethereum has been on a downward trend for a while.

"ETH, in fact, moving towards my target. I wanted to follow long-short with no leverage targeting new highs for 2019, the bid for adjusting entries deploy an average of $ 97.50 and stop loss close to $ 90 off, "the trader said.

Gloomy SHORT TERM FUTURE

In the short term, on the whole, traders expect the main crypto assets to perform poorly against Bitcoin and the US dollar.

Bitcoin Cash has been taken over by Tether (USDT), a stablecoin supported by the US dollar at a ratio of 1: 1. Even TRON, which experienced a 134 percent monthly increase, has begun to decline, losing nearly 10 percent of its value in the span of 12 hours.

If Bitcoin can remain above the level of $ 3,400 for a couple of days ahead, traders believe it could prevent a further decline to a low of $ 3,000 area.