Bitcoin, the most popular cryptocurrency in the world, dropped around 5% in the last 24 hours. This happened as the digital asset is struggling with varied challenges. Today, bitcoin’s price fell to $7,918.28 on CoinDesk in noon EDT. Approximately, it is down around 4.75% calculated from the same time as yesterday.
Since October 7, the digital currency wallet has been trading at the lowest point. Later, the cryptocurrency improved as it slightly rose for trading at $7,974.96.
(Ed note: it is highly speculative to invest in crypto coins when the market is unregulated. Anyone who thinks of investing in it might lose the entire investment.
Asset manager Arca’s chief investment officer, Jeff Dorman, pointed towards broad-based selling activity while clarifying the recent price decline of bitcoin. He further stated that “This lower move is more to do direction and correlation rather than magnitude.”
Dorman said that volumes are still lower than in summer, and they are likely to push the prices lower until it hits resistance.
Many market observers put emphasis on technical evaluation, using it to describe recent fluctuations of bitcoin.
CEO of cryptocurrency hedge fund manager BitBull Capital- Joe DiPasquale said that “We think that the present Bitcoin price action is technical in nature.”
He further added that “The price broke down last month from a descending triangle. For one month, it has been testing the key support at $7,750.
DiPasquale expressed that some relief was experienced ahead of a decision taken by the Bitwise ETF, but the surge was cut short due to rejection by SEC. Further, it was accompanied by declining volumes, and BTC was brought back by it to the pre-ETF-anticipation.
DiPasquale wants bearers to try once again to break the $7,750 support, which in the absence of market catalysts, has a great potential to clear the way for a massive drop to $6,000.
CryptoPatterns newsletter’s publisher Jon Pearlstone also gave his views on this matter. He said that Bitcoin is experiencing a consolidation pattern of approx $8000 since late September when key support broke at $9500. Volume is getting higher, but there is no further sign of a real breakdown so far. In case, we keep selling the target for the present bearish pattern ($6500 range), and if present support has the bulls next target it is a retest of the crash at $9500.
Declining Market Sentiments
Cryptocurrency analytics platform The TIE.io’s CEO Joshua Frank said that “After experiencing a huge run-up in Bitcoin from Dec 2018 to till today, we have started experiencing a major drop in long-term marker towards BTC.”