The cryptocurrency market went through a $4 billion drop in its valuation, which works out at around 3.5 percent. The biggest cryptocurrencies were unable to show signs of a corrective rally, or an increase. This led to small market cap digital assets and ERC20 tokens dropping by more than 10 percent.
Bitcoin price plunged from $3,587 to $3,370 today, which means the biggest cryptocurrency actually is down six percent from its daily peak.
This low daily volume is a worrying sign, as a five to 10 percent dip in price usually results in an increase in daily volume as the sell volume intensifies.
If the volume of the asset does not go up but still drops in value, this means the asset is free-falling with high sell pressure.
It will also have small sell orders from the bears in the market.
Meanwhile, the Ethereum price has also been struggling similarly to Bitcoin.
This cryptocurrency has also seen a drop in daily volume.
Over the past week, the volume of the Ethereum price has fallen from $2 billion to $1.6 billion.
This is a drop of almost 20 percent.
Will they hit the bottom line?
A lot of traders have called a bottom line for Bitcoin this week after seeing the strong recovery of the cryptocurrency from a low $3,000 with the $3,000 support level still in place.
But if Bitcoin does not break out of major resistance levels at $3,700 and $4,000, a proper bottom cannot be declared, according to CCN.
This evening, Bitcoin is still in a tight range between $3,000 to $3,500.
A cryptocurrency technical analyst with an online name Hsaka said: “Rejected by previous support. Seems to be forming a descending channel on the LTFs (aka a way to visualize a downtrend).
“I often use channels for confluence with horizontal levels (both the rejections from the black horizontals were also at the channel boundary).”
Edward Morra, a digital asset trader, warned the Ethereum price could drop to $55 with a 35 percent dip.
He said: “If ETH bulls lose this support and low set at $83, it is basically vacuum till next meaningful support around $55 to $45, another 35 percent downside from here.”