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Bitcoin Tumbles for a Third Day, Price Dips Near $53,000

Bitcoin-Tumbles-for-a-Third-Day,-Price-Dips-Near-$53,0002

Created by TradeOr

3rd Party Analysis 05 May 2021

Key Takeaways

  • Bitcoin remains under pressure for a third straight day
  • The resistance of $58,000 is still keeping a lid on Bitcoin’s price growth

Bitcoin Tumbles for a Third Day

The price of the world’s largest digital asset has been in decline for the past three days. The continued depreciation of the crypto token has decreased its total market share to 45%. The drop in Bitcoin’s market share has recently accelerated, and in total, Bitcoin’s dominance has shrunk from 70% at the start of the year to the current 18-month low.

Bitcoin, on Tuesday, dropped over 6% to an intraday low of $53,200, but later erased some of the losses and closed the session lower by 3.6%, at $54,720. Today, the digital currency reached even lower, marking a session bottom at $52,900. The price has recovered a bit and the asset is now trading around $55,300 per coin.

Since the start of May, Bitcoin’s price has been increasingly dropping in market share, while the asset’s growth has been limited by the $58,000 resistance. Bitcoin’s monthly performance now indicates a decline of 2.2%. The weakness in the number one cryptocurrency for May has been maintained from April’s decline, which registered the first negative month for Bitcoin since September last year.

Since the start of the second quarter of 2021, Bitcoin has lost nearly 6% of its value, dropping from $58,800 to current market price of $55,300. In terms of market dominance, for the same period, the flagship cryptocurrency has lost 14%, sliding from a market share of 59% to 45%.

Investors Confidence vs Crypto Opponents

Cryptocurrency investors, however, remain confident that Bitcoin has more room to grow. Against the backdrop of institutional investors and banks working towards bitcoin adoption, crypto faithful claim Bitcoin’s development is still in the early stages. On the other hand, opponents of the crypto idea argue that crypto asset prices are artificially inflated due to the increased government stimulus programs from the US. They also say the lofty valuations of some crypto assets, including Dogecoin, represent sheer speculative trading activity.

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