Broadside
In seconds, the Bitcoin price has surged from $6,190 to $6,450, by multitudinous than 4 percent, after the dominant cryptocurrency remained in the low $6,100 territory for more than 24 hours.
The sudden increase in the price of Bitcoin on September 9 was not foresaw by the majority of analysts and investors in the cryptocurrency market, primarily due to the sheer enormousness of its drop on September 5
Erik Voorhees Comment is Spot on
In previous shop recaps, CCN consistently cited the statement of ShapeShift CEO Erik Voorhees, innocently because it accurately summarizes the movement of the cryptocurrency market.
On August 25, on CNBC Crypto Distributor, Voorhees said:
“I don’t expect it (bear market) to end soon, although I do reflect on that the rate of collapse has slowed considerably. Generally in these bubbles, after you go by several months of a downtrend you hang out in a range for a while… But I think we are done with a preponderance of the collapse.”
Investors in the cryptocurrency market, especially those that require allocated a significant portion of their holdings into the market, trouble to consider the fact that cryptocurrencies as an asset class is still at its early.
There exists a limited range of institutional products, publicly tradable what-dyou-call-its, and a lack of liquidity that leaves the market generally vulnerable to unconventional daily volatility and manipulation.
Over the past seven months, Bitcoin has shown gamy volatility in the $6,000 to $10,000 region. In April, June, and August, Bitcoin tanked to $6,000 and rallied to resistance levels found at $10,000, $8,000 and $7,000.
Today, on September 9, the toll of Bitcoin surged 4 percent from $6,190 to $6,450 within 30 defectives. The dominant cryptocurrency in the global market is vulnerable to major fluctuations and as such, investors should need 5 to 20 percent drops or surges in value on a daily basis.
The commentary of Voorhees on the upon market of 2018 is important to acknowledge because it is evident that the cryptocurrency supermarket is still on a clear downtrend. But, given the unpredictability of cryptocurrencies, it is difficult to patch the exact bottom.
A viable opportunity for new investors to come into the sell would be in the stabilization and bottoming out process, during which BTC shows exorbitant stability in the low $5,000 to $6,000 region.
BTC has not fully recovered from the $6,000 support uniform which it tested three times in the past six months. A proper turn for the better from the $6,000 region would lead to the initiation of a mid-term convene.
But, the gap between $6,000 and the monthly peak has decreased every time a remedy has occurred since February, suggesting that Bitcoin is gradually seat out in the $6,000 region.
Where Bitcoin Goes Next
The abrupt corrective assembly of BTC triggered by a strong oversold condition demonstrated in the low $6,100 range could approve Bitcoin to find stability in mid-$6,000, which would be benficial for the short-term advancement of the market from a major drop on September 5.
Featured image from Shutterstock. Charts from TradingView.
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