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Bitcoin has lost over $600 in just one night. The currency is now trading for just over $7,600 – the lowest it’s been in about 35 days.
This marks a serious drop over the last two weeks. Just two weekends ago, the currency was trading for about $9,800 – the highest it had been in four weeks. As bitcoin was expected to spike to $10,000, many traders and investors alike sat with bated breath, hoping the currency would once again strike five figures and prove to the world it was not a fluke, and that its behavior during December of last year wasn’t just some random occurrence.
Sadly, bitcoin appears unable to show off for the time being. The currency has incurred serious drops ever since that weekend high, and even failed to garner major price boosts during last week’s Coindesk Consensus Conference, which even analyst Tom Lee of Fundstrat was surprised by. In the past, bitcoin has always rallied during these Conferences, so to witness the exact opposite behavior this year is not only frustrated and upsetting – it’s also concerning.
Why is bitcoin dropping to such a degree? Up to this point, the cryptocurrency has experienced falls of anywhere between $100 and $300 on a somewhat daily basis, all the while gaining a little traction here and there to slightly remedy the negative consequences. What could stir such a nasty, sudden and above all, large drop in such a short period?
At press time, most analysts appear to be of the sentiment that bitcoin is not only trapped in a bearish trend, but that it may last for some time. One source, for example, says that another sell-off is occurring – one comparable in size to the sell-off that occurred at the end of 2017. Indeed, bitcoin’s recent drop is a huge indicator that this practice has not yet passed on.
Unfortunately, this same source suggests that bitcoin’s next support level sits at $7,200 – roughly $400 less than its current mark. From there, bitcoin could drop down to where it stood in March. The bearish trend we’re currently witnessing may not end until the currency falls to $6,000.
Another analyst is on the opposite side of the spectrum, and suggests that bitcoin support sits at $7,800. Thus, we could witness small price spikes in the coming days before any serious changes occur. He further states that bullish momentum is forming, and that bitcoin could potentially retrace its steps back to the $8,000 range.
In the meantime, some good things are still happening for the father of cryptocurrencies. Banco Masventas in Argentina, for example, has started a program that allows customers to make cross-border payments using bitcoin. The bank is looking to expand its services to as many as 50 separate countries.
In addition, executives say that customers can look forward to the bank’s rapid transaction speeds of less than 24 hours. This is a major milestone for bitcoin, which is noted for its slow transaction periods of roughly one to three days on average. Banco Masventas is now the first financial establishment to handle international fund transfers using BTC as a base currency.
Disclaimer
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.