Bitcoin Struggles to Hold $4,550 as Bearish Sentiment Intensifies

Cryptocurrency enthusiasts will have noticed all of the markets are struggling as we speak. That is not surprising, as the bearish Bitcoin price momentum drags all other currencies along with it. Right now, there are only two currencies in the top 10 by market cap which note no losses over the past 24 hours. Both NEM and IOTA noted such small gains, yet they are not even worth paying attention to. After all, such gains could be wiped out in mere seconds.

More Bitcoin Price Declines on the Horizon?

It is evident the Bitcoin price is not evolving in the direction most people would like at this time. With a 2.12% loss over the past 24 hours, things aren’t looking all that great for the leading cryptocurrency. It is certainly possible we will see some gains in the next few days, though, but for today, it appears very little will happen. Moreover, if something were to happen, it will probably result in even more Bitcoin price losses moving forward, which is the last thing most people would hope to see at this stage.

As is usually the case where Bitcoin price movement is concerned, no one has any idea why the value is going down right now. There was no real reason for the recent Bitcoin price increase either, though. People who rely on technical analysis will have reasons as to why these things are happening at these specific times, but one has to keep in mind TA only works if enough people can be convinced things need to evolve in a particular direction. Patterns don’t occur out of the blue, but they are carefully manufactured by specific individuals and groups.

That being said, the Bitcoin trading volume is still intact above the US$2 billion mark. For a weekend, that is quite a significant number, although the overall cryptocurrency markets are seeing over US$6.2 billion in 24-hour trading volume right now. Ethereum is also showing a lot of volume, followed by Litecoin, Ethereum Classic, Ripple, and Bitcoin Cash. All of these currencies are currently in the red, though, which shouldn’t come as any major surprise at this stage.

Nothing has changed in the trading markets ranked by volume either. Bitfinex, bitFlyer, and Bithumb make up the top three. In fact, the entire top 5 is comprised of fiat currency trading pairs against Bitcoin. This is pretty significant, and highly uncommon, to say the least.  Then again, it shows people aren’t necessarily diversifying their Bitcoin holdings through altcoins, which would explain why all major alternative currencies are down in value as well. It seems the entire cryptocurrency market is in a bearish phase for the time being. No one knows for sure when things will improve again.

Judging by the momentum in the market right now, it wouldn’t be surprising to see the Bitcoin price drop even further. Although the US$4,550 level can be maintained for now, a further decline under US$4,200 is not entirely out of the question. This has nothing to do with technical analysis, mind you, but it is evident a lot of people are on the brink of selling their assets if things do not pick up soon. Moreover, the past few weeks have brought Bitcoin some major gains, which are often followed by large corrections. That is just a fact which doesn’t require any analysis whatsoever.

In the end, everyone hopes to see the Bitcoin price return to US$5,000 and beyond sooner rather than later. However, the unprecedented growth of this popular cryptocurrency will be met with a lot of resistance at critical points. The US$5,000 mark is a psychological barrier for many investors and speculators, thus this pullback was to be expected. Despite its growing market cap, Bitcoin can be easily manipulated by large investors; that much is evident.