Well, it looks like bitcoin’s fall to $7,400 yesterday was no fluke. It was reported that the currency was potentially moving back up the financial ladder after its initial drop, though now it seems like it has fallen back into the $7,400 range, and many are wondering if bitcoin has what it takes to gain further momentum.
Bitcoin Is in Hot Water All Over Again
The last month has been extremely difficult for the world’s largest cryptocurrency by market cap. Things initially got ugly in late September after Bakkt – the institutional crypto trading platform designed and owned by the Intercontinental Exchange (ICE) – debuted to very mixed reception, trading less than 75 bitcoin futures contracts in its first 24 hours. While things did eventually pick up over the weekend, bitcoin ultimately fell from $9,500 to about $8,100 in just a matter of minutes.
As we’ve witnessed, volatility is still a major problem for currencies like bitcoin, which at this point, is a little more established at ten years old. One would think that with so much time under its belt, the currency would know how to defend itself from random price swings, though many analysts still see bitcoin as an “infant asset.”
Either way, many industry experts are claiming that bitcoin has the power to drop even further if it’s not careful. Joe DiPasquale – the CEO of crypto hedge fund manager Bit Bull Capital – commented that a “death cross is near.” He states:
Bitcoin’s technical analysis indicates a death cross is near. The last time these averages converged was a golden cross (the 50-day average rose above the 200-day average), the opposite of a death cross, and happened near the end of April this year, when bitcoin was around $5,000.
People Should Be Buying; Not Selling
Jon Pearlstone, publisher of the crypto newsletter Crypto Patterns, claims that bitcoin’s behavior is not irreversible, but that traders need to “exercise caution,” claiming that the currency is in danger of dropping below the $7,000 mark. He comments:
Relying exclusively on heavily watched indicators by retail investors like the death cross all too often lead to getting out, when you should be getting in. That said, in the current case of bitcoin, all the current patterns and indicators are bearish, so great caution should be exercised with price below $8,000… The bullish case for BTC longer term is not dead by any means, so no trading decisions should be made exclusively on the ‘hot take’ of a death cross!
In other words, people should be looking at the situation not with fear, but with anticipation. Given the currency’s lowered price as of late, maybe now is the time to buy and invest… Not engage in a selloff and commit BTC to further value loss.