In another week of low-volume trading, the world’s largest digital coin, Bitcoin, drops to $6,500. The cryptocurrency finished last week on a positive note, closing near $7,600 on Friday. However, due to lowered interest and bearish trends, the coin lost over $1,000 in just two days while current market signals suggest that the sell-off might not be over yet.
As reported by Bloomberg, Bitcoin dropped to its lowest levels since February, once again raising concerns of the long-term success of the cryptocurrency. As the coin lost another 4.6% on Tuesday, it brought the price decline to more than 50% since the year’s start, and an even larger percentage than December 2017 when Bitcoin reached a peak of over $19.5K.
According to Kyle Samani from Multicoin Capital – a cryptocurrency hedge fund based in Texas – the decline might be attributed to new traders who are trying to salvage their investments. Namely, for any crypto enthusiast who bought Bitcoin a few months ago when it was near $9,000, the most logical step to take now would be to pull out rather than risk any further price drops. And thus, the market turns bearish, hindering the recovery of Bitcoin’s price.
Selling Mode On
Where last Wednesday Bitcoin stayed at $7,600 and the market was in a bullish mood, today things are looking rather different. In less than a week, the cryptocurrency went from reaching a peak of $7,724.77 on Thursday to tumbling down rapidly during the weekend to hit $6,564.18 this Tuesday. Naturally, other cryptocurrencies also pulled back significantly when Bitcoin dropped.
Once again, the 24-hour trading volume stayed around $5 billion for most of the week, showing significantly lowered interest in the coin. And today is no different, with the 24-hour volume sitting just over $4.5 billion and rising considerably slower than in previous months. Understandably, the market capitalization also dropped with the price and is currently at $112 billion, as opposed to last week’s $130 billion.
Our technical analysis shows that sellers have the upper hand, with 6 out of 12 oscillators and 9 out of 12 moving averages sending selling signals. The SMA 100 has also dropped below the SMA 200, showing us that there’s less resistance on the downward course. From a current stand point, it seems that the market is being deliberately kept bearish, waiting for buyers to enter the trades, so it is advisable to postpone any move until the next direction becomes clearer. If the bearish wave continues, it could drive the price down towards $6,000.
Warhol Painting to be Sold for Bitcoin?
In other interesting news, a $4 million painting by pop-art pioneer Andy Warhol is to be sold for the first time for cryptocurrencies, Fortune reports. The auction will be conducted on the Maecenas blockchain platform and it will be the first-ever public bidding for an internationally renowned work of art that will allow winners to pay with cryptocurrencies.
The picture up for sale is Warhol’s Fourteen Small Electric Chairs – a less-known Warhol piece that’s 2 meters high and has 14 electric chairs printed on it in different colors. The painting was once in the possession of the Guggenheim museum but is now being sold in collaboration with Dadiani Syndicate – the first UK fine art gallery that can accept cryptocurrency payments.
However, Warhol’s painting isn’t being sold in its entirety but interested buyers could instead purchase up to 49% ownership of the work. Namely, anyone who wants to participate could use Bitcoin and Ethereum coins only to purchase digital blockchain certificates that represent fractional ownership of the painting.