After a turbulent week, the cryptocurrency markets have found some stability at their current prices, and trading volume has been rapidly declining since the markets were pushed to their 2018 lows earlier this week.
Bitcoin, Altcoins Flat As Volume Subsides
At the time of writing, Bitcoin is trading flat at its current price of $4,515. BTC has yet to express any profound levels of stability at its current price levels, and the lack of a decisive bounce following its unprecedented drop to its current price signals that it may have not yet reached buy territory.
As discussed in yesterday’s market update, analysts believe that the $3,500 region is where there is enough buying volume to propel Bitcoin’s price back into the $5,000 levels, although they note that this bounce will likely be a short-term “relief rally,” and is not something to be traded by the weak of heart.
Investors are currently waiting to see whether or not the markets can stabilize at their current prices, or if they will deteriorate and be pushed to further lows. This is proven by the declining trading volume, which is currently at under $5 billion. This is significantly lower than the 24-hour trading volume in the midst of the drop, where it reached highs of nearly $9 billion.
The Thanksgiving holiday in the United States may be contributing to the declining trading volume, as investors in the US may not be trading as frequently as they would on a normal Thursday.
The general altcoin markets are also flat at the time of writing, with XRP trading down marginally at its current price of $0.437, and ETH trading down 1.5% at its current price of $132.
Bitcoin Cash has continued to decline and is just a hair above its all-time-low of $208. BCH is currently trading down 5% at its current price of $220 and is showing no signs of stabilizing any time soon unless there is some bullish price action with Bitcoin that could lead a general market recovery.
Analysts Believe That Margin Traders Need To Be Pushed Out Of The Markets
While speaking to Covesting about the current state of the markets, popular cryptocurrency trader and analyst, Phil_RX (@Phil_RX), explained that the markets will likely go as low as necessary to push margin traders out of the markets.
“Crashing markets generally have two ways to end, a desert crossing phase or a brutal breakdown to take down margin traders in some kind of purge. Both ways seek the same goal, pushing short term speculators out to leave it to longer term prospective. I thought we were heading to the first option scenario, apparently the market decided to opt for the second choice! We’re now straight into a wrecking phase that will probably go as low as necessary to push every margin trader out of the game,” he explained.