Following a turbulent week for the cryptocurrency markets, most major cryptocurrencies have fallen even further today, and analysts now believe that there is more room to fall for Bitcoin and Ethereum.
At the time of writing, Bitcoin is trading down over 4% at its current price of $4,300. Over the past few days Bitcoin has established a new trading range between $4,200 and $4,600, and it is becoming increasingly unclear as to how the markets will respond to prices so low compared to where they were just a couple weeks ago.
There is a general consensus amongst cryptocurrency analysts that another downwards move is imminent, with most analysts expecting a move into the $3,500 region before the cryptocurrency sees any type of relief rally.
While speaking to MarketWatch, Naeem Aslam, chief market analyst at Think Markets U.K., said that the increasing imminence of regulation has been suffocating bulls, and the lack of buying volume could push Bitcoin’s price to $3,800 or even $3,500.
“Bitcoin is likely to move even lower after a failed attempt to break above the $4,700 level. The regulatory environment is suffocating the bulls and the bears are going wild. It is likely that the price may touch the level of $3,800 or even $3,500 if the current momentum continues,” Aslam explained.
Aslam shares a similar sentiment to Jani Ziedens of CrackedMarket, who said that a relief rally won’t be seen until Bitcoin hits a level with significant buying pressure, which he says exists in the $3,500 region.
“Look for the selling to continue over the next few days, but a bounce off of $3.5k-ish that returns to $5k is likely. While that doesn’t sound like a lot given the latest tumble, a bounce from $3.5k to $5k is a nearly 50% payout for just a few days of work. This is not for the faint of heart, but there will be nice rewards for those willing to jump aboard the inevitable bounce,” he said.
Altcoins Keep Dropping as Bitcoin Shows Weakness
Despite Bitcoin’s relative stability at its current levels over the past few days, altcoins have continued to fall lower, with many major alts trading down 4% or more.
At the time of writing, Bitcoin Cash is one of the worst performing major alts, trading down over 6% at its current price of $205. Bitcoin Cash is currently trading below its all-time-low of $208 and is showing no signs of stopping amidst the controversy surrounding the “civil war” between BCH ABC and BCH SV.
Ethereum has also been a very poor performer during the market downturn and is currently trading down 7% at its current price of $121. While speaking to MarketWatch, Aslam also explained that ETH could fall below the $100 mark due to the fall in ICO fundraising interest.
“The most worrying aspect is that Ethereum could fall below the 100-mark and the honest truth behind that is because a large number of bogus coins have been flushed out of the system and this has made Ethereum less valuable,” Aslam said.
As the market’s price action continues to unfold over the coming days and weeks, investors will have greater insight into the long-term significance of this drop.