Investing.com – Bitcoin struggled to hold above $8,000 on Wednesday amid ongoing fund outflows as the total value of the cryptocurrency market fell below $300 billion.
Bitcoin fell 1.42% at $7,886 on the Bitfinex exchange.
Data from coinmarketcap.com showed the total market cap of cryptocurrencies fell below to $300 billion – at the time of writing – down from $331 million last week – and well below the more than $800 billion market cap seen at the turn of the year.
“The declining overall market cap is a reflection that people are withdrawing capital from the space,” said Craig Erlam, senior market analyst at Oanda on Tuesday.
The fall comes as technical traders cited signs pointing to further downward pressure in bitcoin as its chart shows the popular digital currency is nearing the so-called death cross. A term describing the shape created when the 50-day moving price level of a security moves below the 200-day moving average.
Yet, other traders continued to believe that the move lower could prove beneficial, citing technical support - price levels that trigger buying – close to $7,240.
Ebb and flows in bitcoin continued to lead direction in other large-cap cryptocurrencies as Ripple XRP fell 2.66% to $0.57027 on the Poloniex exchange, while Ethereum fell 2.76% to $446.67, nearing its December low of $413.30 on Bitfinex exchange.