8K?...104
$260,931,727,212 - Market Cap
$9,722.58 - Bitcoin Price
66.4% - Bitcoin Dominance
Over the past week we have seen Trump tweeting against Bitcoin, as well as significant press putting pressure on the entire crypto market, in particular Facebook’s Libra token. Is this the reason the price is dropping? Partially, but nowhere near as much as people think. That negative news is more of a preframe to retail investors, setting the sentiment ready for a drop.
A non-trader will tell you that regulatory challenges is the reason for the pullback.
A trader will point you to the below chart and reference the “double top” pattern which suggests a price drop back down to the $8,000 levels.
Who’s right?
That’s the difficult question, and one to look at in more detail. The issue I have with the vast majority of retail investors is that they look and react on such a short time from that it allows traders to manipulate their emotions (and therefore the market) very easily. We’ve seen a great price rise all the way up to near 14K, and a subsequent “fall” to now below 10K.
Now the question everyone is asking where the market is going. Will we bounce up to the 14K levels again or will we enter the blue zone below? My short term view is that it is likely that we are pushed lower, mainly due to retail sensitivity to price action. Larger institutions that want to get into the crypto market won’t be buying at 12,14K, they will leverage emotional manipulation to get retail investors to sell and then guess who buys their sell order? Exactly.
Medium to long term I am not worried, yes there is a likelihood that we see a drop to 8K (and I’ll be buying more if we do), but remember quite often we see obvious chart patterns do the opposite in the crypto space.
So, expect a drop over the next few weeks and if not, great. If you are conservative, Bitcoin may be a better bet for you, or USD. If you are in for longer term (like I am) then little movement is needed.
All the best,
Devin