On December 14, following a fairly large sell-off from the $3,400 region, the Bitcoin price dropped to a new yearly low at $3,200.
As Bitcoin (BTC) declined in value, other major cryptocurrencies including Ethereum (ETH), Stellar (XLM), and Bitcoin Cash (BCH) experienced large losses against the U.S. dollar, with BCH falling by more than 11 percent.
Within a seven-day period, the Bitcoin Cash price` has fallen from $116 to $89 by more than 25 percent despite dropping nearly half of its value the previous week.
Another Bloodbath, Chance of Bitcoin Recovery?
Prior to the four percent drop in the value of BTC, a cryptocurrency trader with an online alias “The Crypto Dog” suggested that it may be a risky period to initiate trades on the short-term trend of the dominant cryptocurrency due to its volatility in a low price range.
Following the weak performance of BTC on the day, the trader said:
“BTC lowest daily close year to date. Is there still a chance of recovery before more lows? Well, maybe. But I am not betting on it.”
Another prominent technical analyst DonAlt echoed a similar sentiment and said that until the price of Bitcoin breaks out of major resistance levels at $3,600 and $3,800, it is of significant risk to enter a long position on the short-term trend of BTC.
“Closed below the swing low – harsh rejection followed. There isn’t much support on the daily time frame still. So far prior support areas have flipped into resistance. Until that changes – stay away from longs,” the analyst said.