It’s hard to stop analyzing and poring over BTC USD as the value keeps falling. We’re watching this coin fall from the Empire State Building, gaining critical mass velocity downward, and wondering what’s going to happen at the bottom.
As of the aftermath of a Thanksgiving weekend, Bitcoin has lost a full third of its value since October. There’s a new low this week – under $4000!
However if you look more closely, that corresponds with an actual rise during today’s trading session.
Analysis over at Cryptopotato talks about the “first signs of a reversal in a critical level” pointing to a $500 upswing from a low of $3,470 and discussing possible retracements.
“Breaking the $3700 is likely to send Bitcoin to these Fibonacci retracement levels: ~$3830 … and ~$4000,” writes Yuval Gov on today’s session. “Over the past few hours, Bitcoin is consolidating between … resistance level on top of the 50-day moving average line … Is the blood over yet? Too early to tell. Bitcoin is still in a bear market, and so far, this is just a deeper correction to the severe declines since breaking under the $6K mark.”
As for the reasons for the original rout, we can take a look at a timely Bloomberg segment last week featuring blockchain reporter Alastair Marsh, who talks about why the Bitcoin market, in his words, has been “falling out of bed” over the past two weeks. First, March cites regulation – investigations into Tether’s price manipulation and some potentially incorrect filings by a couple of coin companies resulting in an SEC civil action. He also mentions the other elephant in the room – the controversy over Bitcoin ABC and Bitcoin SV which rocked the boat this Thanksgiving season.
Interestingly, Marsh and others discuss Bitcoin as a “special use case” compared to traditional markets, and how a lot of enthusiasm at the $20,000 level has become so diminished down around $4000 that uber-banker Jamie Dimon seems to have been vindicated in his prior denouncing of Bitcoin as a “scam.”
Then again, Bitcoin and other cryptocurrencies do upset the apple cart when it comes to traditional banking. Many of the long-term buy and holders are still bullish – and with analysts predicting some retracement, it will be interesting to see where Bitcoin ends up as of the end of this week.