Bitcoin Bows Below $5000 at Last
After much resistance, the price of Bitcoin has succumbed to market dictate to drop below $5000 for the first time in 2018. The drop of more than $500 on Monday Nov. 19 comes after weeks of Bitcoin’s excruciating struggle with its stable price range of over $6000 for much of the year. The drop has long been anticipated going by various recent technical analyses though none could be confirmed accurate at the time.
The standstill in Bitcoin price when it failed to break out of the $6,000 range several times showed it lacked support to go higher. It was daunting for the price to go upward. The weakening price point was seemingly worsened by the Bitcoin Cash split following their hardfork last week.
The breakout of Bitcoin ABC and Bitcoin SV is one of the talking points at the centre of discussions about the dump. There are suggestions that both sides have been selling Bitcoin for fiat to finance their ongoing hash war hence the price drop. This latest correction has also raised questions about the plethora of chart analyses and how some inexperienced investors could not see them objectively and without bias.
What is clear though is that past patterns are not usually an indication of what is to come. At this time last year, the price was preparing for a huge rise in a record high which has not been reached since the beginning of this year. Also, it is clear that not much has been happening in the entire crypto market for some months with less trading recorded on exchanges. The falling price would create further panic selling if the trend continues. This will lead to Bitcoin’s price going even lower than its current $4,660.
The main positive sign considered in the unfolding market situation is the redistribution opportunity that it could provide. Those selling Bitcoin for less are giving incentives to new users to cash in on the opportunity to buy too. Also, save for last November/December spike, the drop so far may not be considered totally strange. If today’s market price is calculated against the movement before the all-time high, not much price value has really dropped.