Bitcoin has now set a fresh 2018 low and is nearing the important psychological level of $3,000. Bitcoin’s drop has led the entire cryptocurrency to plunge, with the overall cryptocurrency market capitalization dropping to $103 billion.

Analyst Claims Bitcoin Likely to Drop Below $3,000

At the time of writing, Bitcoin (BTC) is trading down 1.3% at its current price of $3,260 and is sitting marginally above its daily low of $3,200. Bitcoin appears to have found support at $3,200, but the lack of decisive bullish momentum likely means that it will range sideways, or drop even further, over the weekend.

Despite finding some support at $3,200, Nick Cawley, an analyst at Daily FX, said that he expects Bitcoin to break below $3,000 in the near future.

“Bitcoin looks set to fall below $3,000 in the short-term with the $2,970 Sept. 15, 2017, swing-low the next target. Below here, horizontal support at $1,760 off the July 18 low comes into play in the longer-term,” he said, referencing support levels established in 2017.

The last time Bitcoin traded below $3,000 was in August of 2017, just prior to the cryptocurrency market’s massive parabolic bull run that occurred in the winter months. Because its price has now broken far below the $6,000 support line that was held throughout 2018, macro-technical analysis will primarily start using support levels and trends formed in mid-2017.

Altcoins Plummet, Led by Bitcoin Cash

Bitcoin Cash (BCH) has been unable to find any regions of support since it first began spiraling downwards just prior to its hard-fork event that occurred in mid-November. BCH is currently trading down 11% at its current price of $81 and set a fresh all-time-low earlier today when its price dipped to $77.

XRP is currently trading down 2.5% at its current price of $0.29. Despite the rough market conditions over the past several months, XRP is still trading roughly 20% above its 2018 low of $0.24. XRP appears to have found some support at $0.285, but its near-term price movements will likely be dictated by Bitcoin.

At the time of writing, Ethereum (ETH) is currently trading down 1.3% at its current price of $84. Ethereum set its 2018 low last week at just under $84, and it appears that this price is a level of relative support.

EOS is one of today’s best performing altcoins and is currently trading down marginally at its current price of $1.85. EOS is trading well above its 2018 low of $1.60 which was set on December 7th.

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