Bitcoin is falling. Yes, again. Why do I think so? Nothing has changed on a fundamental level. So are sellers making the mistake of a lifetime?
Bitcoin price is falling, falling and… falling
You probably hate looking at the bitcoin chart when it’s going down. And you’re already really loaded! We’ve had days of declines. Ahead? Maybe more. But why is the BTC price falling?
The fundamentals of cryptocurrency have not changed. ETFs are still operating. No one has introduced a ban on the use of BTC. There are many indications that Donald Trump, who promises to pursue a pro-blockchain policy, will win the US presidential election. Despite this, stock markets are seeing declines.
The reason for bitcoin’s dive is the panic that the German government has sown in investors’ minds. It has started selling bitcoins that it previously took over from Movie2k. As a result, too many coins are entering the market – on three large exchanges: Coinbase, Kraken and Bitstamp – for buyers to be able to concentrate them. The problem is exacerbated by the panic of “weak hands”. And the effect is quite deep declines.
In my opinion, sellers are making a mistake. Unless they plan to buy back bitcoins at lower prices…
Current market situation
Currently, one bitcoin is worth $54,180, which means a 7.7% drop from yesterday and a whopping 11.5% drop in 7 days. The scenario I was hoping for yesterday – a double bottom and a rebound – did not come to pass either.
Looking at chart 1d we can see that the rate could fall by another 2-3 thousand USD.
On the other hand, the fear and greed index has already fallen to 29, or fear. This signals that we are approaching a rebound.
It is worth emphasizing this again: nothing has fundamentally changed! What’s more, in a few days, Ether ETFs should be launched on the market. Another cryptocurrency will have its own exchange-traded fund. This is a good sign.
If you are a long-term Bitcoin investor, you should not sell now (but of course, that is your decision). The current declines are just a correction. If the market remains cyclical, we will catch up in a short time, at the latest in the last quarter of this year. Maybe sooner, considering that the Fed may start cutting interest rates in September.
The above text does not constitute investment advice.
