Are buy and holders worried about Bitcoin losing a quarter of its value?
Well, yes and no. From a high of around $13,500, Bitcoin has recently sunk back down to $10,100 as of this morning, with the cryptocurrency trading in a rather tight band between $10,000 and $11,000 over the past 24 hours.
That has some analysts thinking that the coin has even further to fall, but others identify this correction as basically a fibonacci reaction to the parabolic arc that we reported on last week as Bitcoin surged.
“At some point, every parabola has to break,” says Patrick Heusser in a Crypto Markets interview broadcasted today, invoking Fibonacci. “It was expected that something was going to happen.”
Calling the current correction an ‘ABC’ correction, Heusser said the price could go as low as $9200.
Heusser responded to his interviewer citing a couple of events as possible drivers – first, problems over at Coinbase as the coin’s value sunk, and secondly, comments by Galaxy Digital’s Michael Novogratz, who has been one of the most vocal cheerleaders of Bitcoin, allegedly saying he wants to sell off some of his BTC.
Heusser discounted the impact of both of these things on the Bitcoin market.
“We have seen several exchanges become overloaded on the day when the steep drop happens,” he said.
As for Novogratz’s comment, Heusser said he later retracted it in social , in part, or at least re-framed the expressed idea as a plan to buy Bitcoin back at a lower level. That’s a different thing than trying to sell out for good.
Heusser also spoke about the inherent volatility in the BTC market.
“Volatility is not a bad thing, per se,” he said, suggesting that Bitcoin is now at ‘normal’ levels – and clarifying that he doesn’t expect a bigger correction than perhaps the median prediction now being bandied about the fintech community.
The fundementals, he indicates, are sound.
“We see a lot of buying interest out there,” Heusser said.