Bitcoin continues edging lower on Monday after the collapse during the weekend. The price of the cryptocurrency wiped out another 5% to 11,011 USD at 06:30 a.m. ET.
Conditions remain volatile this week, with last week’s peak of 13,800 USD still unchallenged. Now, attention is turning to a long-term retracement, which according to some analysts claim could bring the Bitcoin exchange rate down to just 6,600 USD. There were also calls for a smaller correction which would focus on the 9,500 USD area, but the retracement might be even more painful. Such a correction is part of the long-term rally expected in the cryptocurrency market, which may last after May 2020, when the Bitcoin will suffer from block reward halving.
Now it would appear various factors have converged to put downward pressure on Bitcoin. Among them, data shows the supply of stablecoin tether (USDT) has doubled this year. The increased tether issuance tends to result in both Bitcoin price gains and volatility. The main credible reason presented for the recent increase of the Bitcoin from 4,000 USD to 14,000 USD is Pump and dump schemes, which verified and predicted by the influx of Tethers to market manipulators.
Josh Rager, the analyst and investor increasingly known for his bitcoin predictions on social media, added to the overall sentiment that the cryptocurrency was about to take a break from its bull run. On the plus side, he argued while uploading a fresh Bitcoin price chart, lower levels would provide a fresh opportunity to accumulate coins. Regardless of price movement, Bitcoin’s technical factors continue to impress, with hash rate again reaching an all-time high in recent days. As Cointelegraph previously reported, the statistic provides a reliable indication of the overall health of the bitcoin network.
The market capitalization of bitcoin slid to 195 billion USD, while its dominance is stable at 61.4%. The cryptocurrency gained market share during the latest rally and many analysts expect it to rise to over 70% during the next year, however, during the last several days there was some retreat.
Crypto market recap
The cryptocurrency market is mostly into the red in dollar terms, due to the collapse of the Bitcoin price.
Most of the top 10 cryptocurrencies are into the red with Ethereum declining by 3.94% to 294.83 USD, while Ripple’s XRP is down by 2% to 0.4079 USD.
Bitcoin Cash and EOS are also down in dollar terms, but ahead against the Bitcoin, declining by 5.4% each.
The biggest decline is registered by Litecoin, which loses 7.3% today to 122.44 USD. The cryptocurrency recovered slightly from the Sunday’s low of 119.66 USD. From a technical point of view, the bulls are likely to face a substantial hurdle on approach to 125 USD with SMA200 (Simple Moving Average) 4-hour chart located on approach. Once it is cleared, the upside is likely to gain traction with the next focus on 129.30 USD (SMA50, 4-hour) followed by psychological 130.00 USD.
Following the latest moves, the cryptocurrency market fell to 318.733 billion USD.
Bitcoin hash rate peaks, but the price declines
The Bitcoin network is looking stronger than ever but prices are starting to decline in a long-awaited correction. During the weekend many analysts thought that the bulls could push higher, but those thoughts have been quashed Monday morning as markets continue to dump.
The weekend witnessed a minor resurgence from Bitcoin which managed to push back above 12,000 USD for a few hours. It could not hold there however and started a slow slide shedding a thousand dollars over the past day, dropping back to around 11,000 USD. The decline marks a 9% loss for BTC as crypto markets dump 25 billion USD.
According to the latest analysis, the Bitcoin will range between 8,800 USD and 14,000 USD over the next couple of weeks to a month. Afterward, will head towards 20,000 USD, eyeing 28,000 USD and 30,000 USD, before a correction.
The Bitcoin network is still looking stronger than ever as hash rate, the horsepower behind the computational calculations, has hit another all-time high. According to bitinfocharts.com BTC hash rate hit 68.37 exahashes/second over the weekend, the highest it has ever been. This has increased network security making BTC more systemically stable. As a result, the difficulty is also at an all-time high of 7.93 T.