In contrast to the surge we have observed in bitcoin price a few weeks prior, the current bitcoin price trend seems to indicate that things are leaning towards a more bearish trend.
If we look at bitcoin’s history and rewind to April 2013 in a matter of just few days bitcoin price fell from $260 to $50. The reason? MT Gox DDoS that created panic and a correction that was bound to happen because of the stupendous bull run. The price fall was rather massive, but what followed was a quick bounce back to around $230. The price did hover around that price point for some time, but eventually settled around $100 until a few months later, in winter 2013, a bull run begun again.
MT Gox eventually exited and wiped off billions of dollars from the bitcoin market. From a high of $800, bitcoin price fell to $160 during summer 2016. Both these major price declines had external events that seem to have caused panic and eventual price declines.
If we look back just a few months to May 2017, the crypto bubble did burst, but there was no external factor that played a role. Subsequently the price continued to rise and ultimately hit a $19,500 mark with some even expecting the cryptocurrency to surpass $20,000 levels in 2017 itself.
However, the price of bitcoin continues to move up and down without any external influence. From a high of $16,500 it dropped to $14,500 in a matter of just few hours yesterday and that’s an indication that the bitcoin market may have entered a bear market where investors aren’t too keen on holding onto the bitcoin, but instead cashing away as soon as they see profits.
The recent price declines we have seen in bitcoin, ethereum as well as all other major cryptocurrencies do not have any external influence responsible, but it seems sentiment may have turned, at least in the short term.