Is Bitcoin ‘Melting’ Or Has It Reached A Price Floor?
Recently, bitcoin prices have dropped to nearly $42,000 today. In over three months, they have reached their lowest.
According to CoinDesk data, the world’s largest digital currency was reduced this afternoon by market capitalization to just $42,102,35.
At this point, since 8 february, the cryptocurrency has been trading at its lowest.
These latest declines fit into a trend of longer lasting weakness, with Bitcoin losing over 30 percent since its peak at around 65,000 dollars in mid-April.
[Ed note: Cryptocoins or tokens investment are extremely sceptical and largely unregulated on the market. Anyone who considers to lose their full investment should be ready.
A blog post was written yesterday by Michael Kramer, founder of Mott Capital Management, LLC, saying “Bitcoin melts.”
The cryptocurrency traded nearly $44,000 at the time he wrote the piece, but Kramer noted “may have to drop the digital currency yet again.”
A number of analysts have weighed in and shed some light on recent declines in digital currency as well as the next place to be innovative.
Bitcoin Has Entered ‘Sell Mode’
Julius de Kempenaer, a senior technical analyst at StockCharts.com, said that “the bitcoin chart is currently in sales mode.”
“BTC dropped its new support level to $47k during the weekend. The break under this level has launched a new series of lower and lower heights that means that the chart is in a confirmed downward trend in everyday time,” he said.
“The next level of medium-term support is between USD 42-43k, tested today, and so far rebounced.” “
Also, Katie Stockton, Fairlead Strategies’ founding and managing partner, LLC, has described the level of $ 42,000 as “schlüsseling support.”
“No signs of exhaustion of the downside as Bitcoin tests that level exist… In two weeks this is more likely to happen through my currently overbought/oversold indicators.”
Pankaj Balani, Delta Exchange co-founder and CEO, gave some insight and talked about the main levels of support.
“We don’t believe that Bitcoin’s floor was yet, despite a sharp correction in the support zone and BTC prices in the range $42,000-$44,000,” she said.
“We do not find buyers who are looking for the bottom fish on a sharp move this time – as in the previous dips in Bitcoin – during the last 9 months. Most traders are persuaded of further deterioration and look at BTC levels of 35000-38000.”
Sean Rooney, Valkyrie Investments Research Director, also talked about possible adverse effects, referring to information he obtained from the blockchain test.
“Chain analytics Traders and short-term investors should remember that large deposits of bitcoin flow into the exchanges from a chain analytics perspective. This could signal that the current downward trend has not fallen selling pressure and lower prices are actually possible.”
Despite recent difficulties in the digital currency, several market monitors have offered optimistic perspectives.
“Despite the negative feelings, fundamental principles seem strong, with the hash rate of Bitcoin and active addresses hitting all the times,” Lau said.
“The upcoming taproot upgrade of Bitcoin looks like it is also on the track, supporting almost 80 percent of miners.”
William Noble, CEO of Token Metrics, a technical analyst with a focus on the recent history of the cryptocurrency database, also discussed the issue.
“I believe you need to think of seasonality when it comes to charts,” he said.
“The fire between the end of May and August last year was tough. History is expected to be repeated,” Noble said.
“This is going to be regretted later by everybody who now sells. It was never more appropriate that phrase did not sell the dip,” he stressed.
“The people’s Crypto. When the space of DeFi wakes up, people laugh at the panic sellers in the middle of May.”
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