Bitcoin was able to reach $4,000 yesterday. It was climbing the past few days in anticipation of the Samsung S10 release that has a crypto wallet. And also, there was a renewed optimism on the part of the crypto market when JP Morgan announced that they are making their own cryptocurrency. However, Bitcoin also dropped to around $3,700 today.
For anyone who has been following the current trends, is it time to buy Bitcoin because it has bottomed? Or maybe, you should wait a bit?
For Peter Brandt who is both a commodities technician and trader, mentioned that there is a likelihood that Bitcoin is going to test $3,000 in the next weeks. He believes that this is going to be the trend in the next 6-7 weeks before we see another rally. He based this observation on the 2013-2016 price movement of Bitcoin. He also mentioned that there is the likelihood that there will be lower lows in the coming future.
$5 Billion Wiped Out
In just a day, the sudden fall has wiped out $5 billion from Bitcoin’s market capitalization alone. And worse, the entire crypto market has lost around $14 billion. This has affected other cryptocurrencies as well including Ethereum, XRP, and Litecoin. All of these major altcoins were down by around 5%.
There were those who suggest that the surge yesterday was because of Ethereum’s upcoming hard fork on Wednesday. Ethereum has increased by around 60% this February because of this as well.
Bitcoin Hitting $1,000?
Could there be a possibility that Bitcoin is about to hit $1,000? Though this is within the realm of possibility considering the volatility of cryptocurrencies, for Brandt, he believes that people who are calling Bitcoin to fall around $1,000 are acting irresponsibly.
There are a lot of reasons in 2018 why Bitcoin and the rest of the crypto market went bearish. Primarily it is due to the lack of regulatory clarity in the industry. Regulators were looking at the possibility that cryptocurrencies could be used in illegal activities from money laundering to tax evasion.
In recent months, the US Securities and Exchange Commission was hunting down on ICOs as well as celebrities who promoted the tokens without saying that they were paid to do so. Floyd Mayweather and DJ Khaled were both fined by the agency.
And also, the call for a Bitcoin ETF still looks far from reality. It seems that the agency is concerned about the possibility of price manipulation. According to the agency, the lack of surveillance tools by the cryptocurrency exchanges makes the industry prone to price manipulation. Many believe that a Bitcoin ETF could make it possible for the crypto market to be able to bounce back. It makes it so much easier for institutional investors to be involved in the market.
Are we going to see the crypto market to recover soon? Or maybe, we are going to see it reach new lows? It is quite clear that there is less hype in the crypto market today especially after Bitcoin made a massive correction upon reaching near $20K in December of 2017. So what’s next?