- Bitcoin’s price fell today after hitting its highest ever.
- Analysts say Decrypt he was trading getting cold feet.
- Still, they say the best is yet to come. (Crossing fingers.)
Today, things went rope for Bitcoin, just as a few cryptocurrency analysts predicted it would. The Bitcoin price, which reached its highest ever level, plummeted $ 19,816, to $ 18,543. It then recovered to $ 19,364 before falling to its current price of $ 18,936.
The big question: why, and what is happening now? Decrypt the experts asked.
Charles Bovaird, an analyst at Quantum Economics, said Decrypt the simplest explanation is, “after rising to a record level, traders took a profit, causing Bitcoin to retreat.”
In the 2017 bull run, Bitcoin collapsed after reaching all new milestones. On December 8, 2017, 10 days before Bitcoin hit its highest ever, Bitcoin dropped to $ 13,630 just two days after it hit its second highest price of that bull run, $ 18,268.
Of course, when Bitcoin hit its previous all-time high on December 17, 2017, it crashed so hard that it took three years to recover.
Eric Wall, chief investment officer at crypto investment firm Arcane Assets, said “too skitish” traders were responsible for the dip, worrying that Bitcoin was already at its peak. Unsure of when Bitcoin will break down, they exchange money early to avoid losing all their money.
Tim Rainey, CFO of New York crypto company Greenidge Generation, said Decrypt that it is “natural for traders to make more emotional decisions” as the price enters uncharted territory.
It expects “some temporary dips in the near term,” but remains “bullish on the price rising to new highs in the longer term.”
Wall, the crypto investment manager, added that fear does not only improve traders: it also depends on their own complex economic models. “Some are currently staring at TA [Technical Analysis] patterns, such as double-peak formations or Bollinger Bands, to anticipate the next step, and many of those traders are convinced that they must follow what their strategy tells them. ”
Bovaird believes the price of Bitcoin will continue to fall should it rise further. “If you are asking if bitcoin will suffer arrears as it rises in price, the answer is yes. The digital currency is highly volatile, and sudden price rises will drive some market participants into sales, thus driving setbacks. “
The unanswered question, however, is whether Bitcoin has already reached its peak, and traders must now suffer a series of falls.
Wall thinks that in 2017, Bitcoin is going to crush the all-time high set.
“I can’t say if that is the last dip we’ll see,” he said, but it will take a lot of work to slow the crypto market. “I expect any dip to be bought up pretty quickly. When we do the real, encouraging immersion, it will go from a significantly higher level. “
The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment or other advice.