Bitcoin falls back below $4,000 as fear returns to the market

Despite rallying from $3,500 to $4,400 in the past week, Bitcoin has failed to gain a level to the upside, since falling back down below $4,000 and prompting panic among altcoins

Bitcoin began the week precariously clinging onto yearly lows at the $3,500 level of support. It then rallied 25% to as high as $4,400 before succumbing to more pressure to the downside.

The market experienced more selling pressure this morning, with Bitcoin falling back below $4,000 as many of the altcoins saw double-digit declines.

Sirin Labs Token, who recently released their blockchain phone to the public, has seen the worst sell-off out of the top 100 coins, falling 32% in the last 24 hours, while Verge has fallen around 25% in USD value.

EOS, Tron, and Cardano have also seen substantial moves to the downside, all falling more than 10%. One of the only coins that has performed well has been Zcash, which rallied against Bitcoin in light of Coinbase Pro’s decision to list the privacy coin on their exchange.

But all eyes are firmly rooted on Bitcoin moving into the typically low-volume weekends. It must hold the $3,950 level of support in order to safeguard itself from falling to $3,500 and potentially new yearly lows.

The lack of buy volume is certainly a cause for concern for the crypto market, especially in light of the bullish news released this week in regards to Nasdaq futures and the Lightning network.

Moving forward, Bitcoin looks primed for further price-action to the downside, and with the SEC seemingly coming down hard on ICOs, regulation may be the narrative to take us into the New Year.

Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.

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