Bitcoin Price Tumbles Sharply Below $5,000 Mark
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Bitcoin price tumbles sharply as it fell below the $5,000 level for the first time in 13 months. The crypto market crash intensified after some stable trading during the weekends. The largest coin was seen trading around $4,600 on Tuesday, losing 24% of its value in the past seven days alone.
Crypto markets saw stable and steady prices from September to mid-October. However, in the last seven days, they plummeted sharply. The market itself did not have any major fundamental changes. Instead, the selloff was triggered by specific events involving Bitcoin Cash and the SEC.
Downtrend Could Extend
Traders and market pundits are expecting this bearish spell to extend the momentum, as BTC has broken several support levels in the past few days.
The cryptocurrency trader Altcoin Thoreau said, “Most indicators have bottomed out and reached new lows we haven’t seen for a long time on Bitcoin. Boom and bust cycles are nothing new for crypto, and I believe we still have some time to go before reaching the bottom.”
Willy Woo, the Woobull.com founder, has presented similar views about the cryptocurrency markets. He claims that the bearish cycle for crypto coins could continue during the first two quarters of the next year before seeing some stabilization by the end of 2019.
He stated,: “Until we see some new catalysts to change the trend we will continue the bear market into mid-2019. Bitcoin will capitulate or trade sideways while altcoins pump. Most of the gains made from alternative cryptocurrencies will flow into BTC, and by then Bitcoin should achieve its a bottom and begin an uptrend before the halving in 2020.”
Mati Greenspan, a senior analyst at eToro, gave a bleak outlook if the bearish trend continues. However, he also sees buying opportunities after the big selloff. He said, “The next logical support level is at $5,000. But if that fails, the next support is at $3,500.” This was noted in a client update on Monday.
Conclusion
The cryptocurrency markets generally respond quickly to market speculations, due to low regulatory control and the lack of fair value concept. Recently, the Bitcoin price tumbles sharply, adding to the overall market volatility. Trade concerns over the BCH hard fork and SEC crackdown on illegal activities and outright fraud in the growing digital currency industry have further intensified the selloff. The market could move either way in the coming days. Therefore, investors should closely gauge all fundamental and technical movements.
What’s your opinion about the latest crash and how long do you believe the bearish trend will exist? Express your thoughts in the comment section below.