- Bitcoin’s price plunged today after hitting its all-time high.
- Analysts tell Decrypt that dealers get cold feet.
- Even so, they say the best is yet to come. (Fingers crossed.)
Today it got tough for Bitcoin, just as some cryptocurrency analysts had predicted yesterday. Bitcoin’s price, which had hit its all-time high of $ 19,816, fell to $ 18,543. It then rebounded to $ 19,364 before falling to its current price of $ 18,936.
The big question: why and what is happening now? Decrypt asked the experts.
Charles Bovaird, an analyst at Quantum Economics, said Decrypt The simplest explanation is, “After traders hit an all-time high, they took profits and caused Bitcoin to pull out.”
In the 2017 bull run, Bitcoin fell after each new milestone was reached. On December 8, 2017, 10 days before Bitcoin hit its all-time high, Bitcoin fell to $ 13,630 just two days after the second-highest price of that bull run, $ 18,268.
Of course, when Bitcoin hit its all-time high to date on December 17, 2017, it crashed so badly that it took three years to restore.
Eric Wall, chief investment officer at crypto-investment firm Arcane Assets, said the decline was due to “overly nasty” traders and feared Bitcoin had already peaked. Not sure when Bitcoin is going to crash, they pay off early so as not to lose all of their money.
Tim Rainey, CFO of New York crypto company Greenidge Generation, said Decrypt that it is “natural for retailers to make more emotional decisions” when the price breaks new ground.
He expects “a few temporary drops in the short term”, but remains “optimistic if the price rises to new highs in the longer term”.
Wall, the crypto investment manager, added that it is not just fear that defeats traders, but also those who rely on their own complex economic models. “Some are staring at TA right now [Technical Analysis] Patterns like double-top formations or Bollinger bands to anticipate the next step, and many of these traders believe they need to follow what their strategy tells them to do. “
Bovaird believes the price of Bitcoin will continue to fall if it continues to rise. “If you are wondering whether Bitcoin will suffer retracements as its price goes up, the answer is yes. The digital currency is very volatile and sharp price increases will of course motivate some market participants to sell, causing setbacks. “
The unanswerable question, however, is whether Bitcoin has already peaked and traders are now enduring a series of slumps.
Wall believes Bitcoin will crack 2017 all-time high.
“I can’t say if this is the last slump we’ll see,” he said, but it will take a lot of work to slow the crypto market down. “I assume that a dip will be bought up pretty quickly. If we take the real, heartbreaking leap, it will come from a much higher level. “
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The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment or other advice.