It looks like bitcoin has let everyone down again. The world’s number one cryptocurrency by market cap has taken a serious turn for the worse and fallen to $11,600 – roughly $400 less than where it was yesterday.
Another Bitcoin Fall Is in the Books
The currency has been on a serious roll after the last few weeks, rising all the way from the mid-$9,000 range to above $12,000. However, now that the currency has broken previously set resistance, the asset is seemingly taking a serious step back. It initially rose all the way to $12,400, but then settled at $400 less than 24 hours ago. From there, it has taken another $400 dive, and has lost about $800 in two days.
This is not only a disappointment, but it is a sheer repetition of what bitcoin has done multiple times in this situation. Continuously, bitcoin proves itself not strong enough or incapable of moving beyond a resistance point without serious repercussions. In this case, the resistance point in question was $12K. Many of us were waiting with bated breath for the currency to rise beyond this mark, but now that it has, the surge hasn’t lasted particularly long.
This is the exact same thing that happened over the past three months every time bitcoin worked to reach $10K. This was the previously-set level of resistance for the world’s biggest and most popular cryptocurrency. There were incidents in both May and June in which bitcoin worked hard to reach $10,000, only to rise above the position for what felt like mere moments and then fall back down to its previous point.
What’s happened today is no different than the moments of May or June. What we are seeing regularly is that bitcoin really needs something big and long lasting if it’s going to truly defeat whatever resistance barricades are in its way. When it first rose above $10,000, news had been delivered that a second wave of stimulus checks for Americans was on its way.
In addition, banks had announced that they had gotten newly attained permission to offer crypto custody services to their customers. This was huge in that the gap between both decentralized and centralized finance had now been bridged, and thus was set to bring a whole new level of legitimacy to the cryptocurrency market.
Something Big Needs to Happen
Now, however, there doesn’t seem to be much in terms of that capacity. Yes, institutional players appear to be taking more of a stance in the bitcoin space what with the $1 billion in investments from Grayscale, but this is small beans when compared with news of the banks providing crypto services.
What bitcoin needs if it’s going to incur another serious, permanent surge is another push into mainstream territory. When this occurs, we’re likely to see bitcoin’s price jumps last.