On Dec. 8, at around 06:00 UTC, the world’s first cryptocurrency price dropped from $18,770 to about $18,031. After that, by press time, it retraced marginally to $18,200.
Since the bellwether cryptocurrency hit an all-time peak of about $19,920, per the BPI, the last time bitcoin (BTC, -5.49 percent) encountered a comparable decline was on Dec. 1.
According to CryptoQuant CEO Ki-Young Ju, the supply of vast quantities of bitcoin on exchanges supplied by big investors, “whales,” as they are sometimes referred to, led to the weakening rates.
“When it comes to short-term price prediction, I think the most important data is supply and demand,” said Ki-Young Ju, a CEO from CryptoQuant. “I think this plummet was started from bitcoin…whales who wanted to keep their bitcoin on exchanges making them readily available for sell orders.”
Others see recent investors dragging their profits out of the business. Lucas Huang, head of development at Tokenlon’s decentralized exchange, observed that “an 80% increase in bitcoin price over only two months might be a profit too tempting not to take.”
In the meantime, another signal may come from how Wall Street views one massive buyer’s opportunities in recent months. Citibank analyst Tyler Radke downgraded his rating on Microstrategy, a market intelligence agency, to “sell” from “neutral,” flagging bitcoin euphoria to buyers could be overextended.
Not everybody is Bitcoin-buff. “Bitcoin’s latest move down is a rest stop on the way to $30k levels by mid-2021,” said investor Jehan Chu, co-founder of Kenetic Capital. John continued to say that, “Experienced bitcoin investors are well accustomed to these drops and understand them as opportunities to buy the dip. Longer-term, we can expect these moves to become less frequent as institutional funds continue surging into the market, and the volatility declines further.”
For technical observers, however, bitcoin’s current market activity in the medium term reflects an ongoing narrative of lower lows on the daily scale. While growing daily sale volume, that signals to weaken buyer interest.
Should investors struggle to drive prices above $18,600, as the short-term trend flips from bullish to bearish,,,, a possible spell of further downside can break out.
Other prominent cryptocurrencies, including ether, XRP (XRP, -9.33 percent), and litecoin, also suffer (LTC, -9.01 percent). In the last 24 hours, all three are down between 7 percent and 9 percent as well.
Meanwhile, with the Dow Jones Industrial Average closing 0.35% in the green and the S&P 500 index up about 0.28 percent on the day, common shares have kept stable.
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