The opinion of the writer is their own and do not constitute financial advice in any way whatsoever. Edited by Sean Vanian, contributor for The Coin Radar.
After four consecutive sell offs the bitcoin price has now dipped below £5900 as of June 23rd 2018. This is officially an all-time low for 2018.
In February the bitcoin price recorded a brief dip to the lower end of $6000 before bouncing straight back up in the same day. In this situation the bitcoin price has entered a new low, dropping below $5000 for the first time since November.
Comparisons with 2014
In 2014 Bitcoin saw an almost identical price of 80% from its all-time high. The similarities of the 2014 and our 2018 situation can be drawn from the eruption of a notably similar retail investor bubble.
During the June recovery it seemed the notable bitcoin rise and the short altcoin rally had brought stability and hope to the market, but after 12 days of gains we saw a massive sell off on June 11th which has resulted us plunging to levels in the $5000 region.
Where is the bottom?
As of current, many traders see a possible $5000 bitcoin bottom, some below this region. Reasons for this is we see clear support at this level, it is a clear psychological buy area and a large number of traders will be eagerly awaiting to buy at this level. It is very difficult to see BTC dropping below this region.
"The opinion of the writer is their own and do not constitute financial advice in any way whatsoever. Edited by Sean Vanian, contributor for The Coin Radar."
If a lot of buyers buy at this level, the price will most likely rebound from this new level of support. if the fear, uncertainty and doubt in the market is strong we could see even further lows, but we don’t see this happening.
A drop all the way from $20,000 to $5000 would signify a 75% drop from the all time high, further than that would lead BTC to record a correction worse than 2014.
Noting that the much improved, technology, demand and hype in the current cryptocurrency market, especially with public investors, it is very unlikely for BTC to drop below $5000. A large number of traders will be looking toward this area as a re-entry, if all of these participants do decide to buy at this support level it is very likely the price will rebound here.
If an asset drops to levels in the region of 70+% in value it is also a viable buy opportunity for investors in the public market, especially Wall street. As we enter these regions it is also likely we could also to see seasoned investors building positions in Bitcoin and other cryptocurrencies.