Bitcoin tops $5,000 and then promptly sells off 10%
Bitcoin makes another all time high, and then falls sharply.
Bitcoin did what many analysts and prognosticators had been calling for, it finally touched that big round $5,000 number.
Then it did what many probably expected as well, it dropped fairly sharply as profit taking ensued.
The current sell off is the biggest since early July.
However, it's not just Bitcoin as the entire cryptocurrency market cap is pulling back sharply as well.
After topping $180 Billion last night, the cryptocurrency market cap is currently sitting near $160 Billion.
Just like Bitcoin, this sell off in the crypto space is also the biggest since July. When the cryptocurrency market cap dropped roughly 12% in a single day, from $72 Billion down to $62 Billion.
Just as Bitcoin dragged many alt coins higher, it also seems to pull them all lower when it decides to drop.
Which is evidenced by Steem and many other altcoins seeing red this morning.
Steem is currently trading down around $1.30 after spending most of the week in the $1.50-$1.60 range.
The big question on everyone's mind is whether this is a run of the mill correction or the start of a bear market in the space?
Bitcoin has died 27 times, and risen back to life each time. There isn't much reason to believe this time would be any different.
However, is this dip going to be a bear trap that anyone who sells or shorts right here is going to regret within the next couple of weeks or is it going to be the start of a bear market in the space?
For me personally, with all the new institutional interest and media attention around Bitcoin and the entire crypto space, I would venture to guess that any dip will be bought right now.
People have been waiting for an entry point and they literally haven't had any, not a single dip since things turned up in mid July.
This would be their first opportunity to buy a pull back, for that reason I think this will be short lived and higher highs are likely on the way again within the next several weeks.
What do you think?
Bear trap?
Start of bear market?
Top of the crypto markets for the foreseeable future?
Let me know in the comments below.
Stay informed my friends.
Sources:
https://news.bitcoin.com/bitcoin-hits-5000-usd-new-all-time-high/
https://www.coindesk.com/bitcoin-drops-5000-crypto-markets-see-13-billion-sell-off/
Image Sources:
http://kryptomoney.com/bitcoin-price-may-drop/
https://www.coindesk.com/bitcoin-drops-5000-crypto-markets-see-13-billion-sell-off/
https://www.pinterest.com/pin/548242954609027359/
Follow me: @jrcornel
Hey ,
Very interesting read, Thanks you for sharing it!
Did it top the 5grand? reasons for the fast decline afterwards?
Its how the market works, supply and demand, Buyers drive the price up, but when you run out of buyers theirs only one way to go, its like a re balance. Think of the market as a battle between to teams, buyers and sellers. their whole purpose to find the true value of an item. As more people enter the crypto world and buy buy buy, eventually the buyers run out of power and the sellers take over. With bitcoin being a large portion of the currency used to buy other coins, the rest of the market will be effected by the value of bitcoin. Its all to be expected if you understand whats going on. Its actually a good thing because it also creates a good entry point to buy back in. It will be a short lived re balance of things and the growth will continue. With crypto becoming more and more popular and growing at a rapid pace this happens alot and will continue to happen. Then everyone panics as always and panic sells everything and writes a horror story scaring everyone about how they cant afford dog food anymore and how bad crypto is. While the rest of us laugh as we buy our new corvette
This is me after the last price correction and taking profits ;)
I remember in Clif High interview he said there will be 1 more correction before going to the moon, so i am going to buy some more
I am not concerned either. It's how Bitcoin works. Grow, grow, grow. People pull out and profit and then back to grow, grow, grow again. This is great, much better then the other cryptos pump and dumps.
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Just a dip
hi jrcornel, before the correction when everything was green i regretted not owning some alt coins. So today i am buying at discount prices
Anything that goes straight up without any retracement is not healthy and probably a mania. Bitcoin is on fire, for sure, but I'm afraid many of the investors are expecting 100% gains every day and that to is not healthy either. I'd like to see BTC hover in the 4800's for a couple of weeks before it's next leg up. It needs to build a solid base, otherwise the swings will be lethal.
I think it's just a correction. I'm expecting a steep correction though. Bitcoin down to $3000-$3500 area. I'm still predicting $10000 in 2018 though
yes very normal correction, 3000-3500 would be a great bargain
Agree on both counts
Im not sure if it will drop as low as this. I'd say $3600 to $4000 range unless if there happens to be problems with segwit in the near future!
As a newbie to all of this it blows my mind that this is real. Thank you all for beleiving in this possibility!
That's a great news. I think bitcoin will go high in future. I am never concerned with short term volatility. My philosophy is always hold for the long term. I hold my bitcoin tight.
Same here. I would actually love for it to really tank so I could get some more at a better price. :)
Agree on the hopes for tanking!! Besides what I said below, remember just 5-6 weeks ago (amidst Aug 1 hf uncertainty) btc hit $1800 for a second. I'm sure most of us regret not buying big then. We may get another chance at low buy in in November https://www.forbes.com/sites/laurashin/2017/07/25/why-november-will-be-the-real-test-for-bitcoin
I do remember that, Goldman actually nailed that move perfectly. I picked up some sub $2000 BTC myself. ;)
Brilliant! I was actually waiting for it to go lower :P
I hope it is just a healthy pullback and if that is so, it is welcomed by me as I am averaging in over time!
My thoughts exactly.
Exactly my thoughts. Just relax.