Currently, the overall cryptocurrency market is sitting at just over $107 billion, and one more major drop led by Bitcoin will likely bring it down to below the important psychological level of $100 billion, which has not been seen since July of 2017.
At the time of writing, Bitcoin is trading down 3% at its current price of $3,400, falling from daily highs of over $3,500. Bitcoin is currently trading down 15% from its 7-day highs of nearly $4,000, and the lack of investor confidence in either a relief rally, or an end-of-year rally, is clearly declining, as illustrated by the statistics regarding the amount of net-long and net-short positions.
According to data compiled by DailyFX, traders are continuing to shift their positions from net-long to net-short, signaling that they expect further drops to be on the way.
“Retail trader data shows 70.1% of traders are net-long with the ratio of traders long to short at 2.35 to 1. The percentage of traders net-long is now its lowest since Nov. 28 when bitcoin traded near $4,200.66. The number of traders net-long is 1.6% lower than yesterday and 2.7% lower from last week, while the number of traders net-short is 14.0% higher than yesterday and 21.4% higher from last week.”
It is important to note that net-short to net-long ratios simply give the markets insight into the sentiment amongst traders and is not a reliable method for determining the future direction a specific asset or market is heading.
Bitcoin’s current instability has continued to be a negative thing for the altcoin markets, with most major cryptocurrencies trading down 3% or more at the time of writing.
XRP is one of today’s best performing altcoins and continues to respect the $0.30 region as a level of support. At the time of writing, XRP is trading down just over 1% at its current price of approximately $0.30.
Today’s drop has led Ethereum to fall below the $90 mark, and it is currently trading down 3.6% at its current price of $88. Ethereum is sitting 6% over its recently established 2018 low of $83 and is trading down over 20% from its 7-day highs of $111.
IOTA (MIOTA) is one of today’s worst performing cryptocurrencies and is currently trading down nearly 12% at its current price of $0.22. IOTA has experienced choppy trading over the past couple of days, sharply rising to over $0.26 yesterday before quickly falling back to $0.23 and continuing its decline into Tuesday.
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