Bitcoin Becomes Cheaper, the Market Continues to Go Down
CryptoBit News Today2 min read
Bitcoin's price has been on a downward trajectory this past week, with the digital currency struggling to maintain its value above $2,000. The biggest cryptocurrency by market capitalization started its descent on July 10, when it dropped from staying around $2,550 to a low of $2,225 on July 14. Technical indicators suggest that the bear market may continue, with the long-term 200 Simple Moving Average (SMA) well above the 100 SMA and the Relative Strength Index (RSI) dropping low since July 12.
Technical indicators show a bear market
At the time of writing, Bitcoin's price was hovering around $2,076, its lowest price in two months. Trading volume has also declined, with only around $1 billion in Bitcoin traded per day.
Some traders believe that the upcoming activation of SegWit may provide a boost to Bitcoin's price, while others are anticipating a further drop to the $1,800 range. In a bullish situation, strengthening purchasing interest following stabilization above $2,000 could trigger a rebound within a day.
Altcoin markets affected
Bitcoin's drop triggered similar downturns among leading alternative cryptocurrencies, pulling down assets like Ethereum and Litecoin. Ethereum suffered a particularly rough week, shedding nearly $18 billion from its market valuation over a one-month span. The total market capitalization of all cryptocurrencies has declined from a high of $115 billion in mid-June to around $61 billion at the time of writing, a drop of 46.9% in just over 30 days.
Scaling debate continues
The ongoing debate over Bitcoin's scaling solution and the possibility of a hard fork on August 1 has contributed to the market uncertainty. The community is waiting for the release of the next SegWit2x code, which is expected to come out this weekend. Once that release arrives, most miners indicating backing for Segwit2x are set to deploy the software.
Concerns over a potential hard fork have stoked fears that Bitcoin might split in two, an unprecedented occurrence that could disrupt the $41 billion market. Forthcoming technical changes in Bitcoin along with shifts in Ethereum's emerging ICO ecosystem could maintain selling pressure during a difficult period for the asset class.
