The entire market continues to sink this morning as we enter a second day of market declines. Yesterday, it seemed as if there was a slight lapse in this with figures starting to recover early afternoon, however this recovery was short lived, stretching the negative trend right through today, possibly further into the week.
Bitcoin is now teetering on a crucial threshold, one which it has worked pretty hard to get a grip of. The $9,000.00 mark is leaps and bounds above the depressive Bitcoin values we saw in March; indeed, April has helped Bitcoin step away from this in a significant recovery period, now though, the familiar story of the slippery downwards slope looks to be re-appearing. Bad news for new Bitcoin investors.
At the time of writing, Bitcoin is valued at $9,088.07 and is down 1.54%. If this negative trend continues, we will see Bitcoin back within the $8,000.00 region soon enough.
Of course, peaks and troughs are all part of a cryptocurrencies developments. In such a volatile climate this sort of behaviour is expected and therefore, what we are seeing at the moment may just be benign declines as a result of Bitcoins bumpy nature. The problem here is that it is often difficult to gauge how people will react to the current behaviour of Bitcoin, this is a financial asset after all.
As The Merkle argues:
“Any dip can trigger panic selling, which happens quite regularly in the cryptocurrency world. Ever since dipping almost below $9,000, there has been a small bounce on the chart, although the battle for control of this price level will remain in effect for quite some time to come.”
The more out of control Bitcoin remains, the more we might see instances of panic selling, especially from those who bought in whilst Bitcoin was around $7,000.00. Waves of panic selling, and coin dumping will of course change the value of Bitcoin, shaking things up and making it really difficult for Bitcoin to keep a hold of its value. In order to make progression, Bitcoin needs to try and remain where it is.
This ‘battle’ is a constant tug of war between people and their emotions and of course the statistics of the market. It’s very interesting to observe but it has to be expected, of course people are passionate about their crypto, that’s the beauty of the industry.
Overall, for now, whilst we may see Bitcoin drop below $9,000.00 soon enough, we should expect it to move back up to $10,000.00 over the coming weeks. We should really only start to worry if we see the forbidden $7,000.00 start to re-appear.
May looks to be bringing another bumpy period, let’s hold on and see what happens, have we let April’s optimism get the better of us?
Featured Image Original Source: Pixabay