The cryptocurrency market over the last month and well into December has shown tremendous amounts of volatility and has booked some major losses. Bitcoin alone has lost more than 50% of the gains that it made in the 2017 December bull and has fallen below every support line established for them.

In the past three days alone, the lead cryptocurrency; Bitcoin, has fluctuated between $3,200 to $3,600 USD. The fluctuation has been quite drastic over the last three days and the community is starting to worry. A major reason for the worry that is slipping throughout the cryptocurrency market is that the Bitcoin is unable to go above the $3,700 USD mark.

With Bitcoin falling, the cryptocurrency market too has been taking a hit. The total market capitalisation of the market has fallen majorly and has right now settled at $109,453,980,797.

Bitcoin On The Decline

Bitcoin has been on a decline for over a couple of months now. The fall of the Bitcoin, in particular, is of no surprise to the market because it was more than expected after the bull run in December. But there are factors that the cryptocurrency market did not see coming that further affected prices.

One of the major reasons for the cryptocurrency market’s current decline is the close of the US tax year. The US Government is now imposing capital gains tax on the people holding cryptocurrencies especially Bitcoin. The imposition of the capital gains tax is because of the bull run of 2017, in which Bitcoin set a new all-time high which went up to almost $20,000 USD. Which promoted a large-scale sell-off in the market because people do not have enough to pay the capital tax.

The Bitcoin Cash hash war is another reason for the cryptocurrency market’s decline. But that, of course, has concluded. Although the damage that the hash war did was quite large and left a terrible aftertaste in the cryptocurrency community and market alike.

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New Support Line

A cryptocurrency trader called Josh Olszewic, or more popularly known as BrotoshiMoku, has come out and said with great apprehension that Bitcoin stands the risk of falling down to $2,500 USD over the next two quarters. But then he further added that there was a possibility that the cryptocurrency could defy current trends and break resistance levels and soar above $4,000 USD.

With the cryptocurrency market on a prolonged downward trend, the former of the two statements made by BrotoshiMoku seems more likely and more probable. Bitcoin is currently trading at $3,452 USD.

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Hitesh Malviya

Hitesh Malviya is the Founder of ItsBlockchain. He is one of the most early adopters of blockchain & cryptocurrency enthusiast in India. After being into space for a few years, he started IBC in 2016 to help other early adopters learn about the technology.
Before IBC, Hitesh has founded 4 companies in the cyber security & IT space.