Bitcoin (BTC): Is This Your Last Chance To Become A Millionaire?
Bitcoin (BTC) has hit new lows and lost about 80% of its value since the coin hit its all-time high of $20k in 2017. At the beginning of 2018, a kind of regret gripped a few within crypto circles. They had witnessed in sheer horror as early investors and holders of Bitcoin reaped massive gains.
Bitcoin and the rest of the market boomed to make overnight Bitcoin millionaires. With a few short months, BTC/USD rallied to reach $20k.
Since the beginning of the year, analysts, experts, and investors have predicted that crypto assets will boom once more by the end of the year. Although that hasn’t happened due to an extra-ordinary bearish year, enthusiasts still hold that the coin will reach at least $25k.
Does the latest price crash present a chance to dip in and gun for the millions? It tantalizingly is, but caution should precede any actions taken.
Has Bitcoin (BTC) hit bottom?
There’s every indication that the leading cryptocurrency has hit the bottom and if there’s a chance to get in, keenness over the next few days will be crucial
Bitcoin is trending in oversold conditions and the latest sell-off is a result of the fact that Bitcoin remained locked in a descending triangle from January 2018 to the latest dip. Its key support area has been at $6,500, but it rejected that to break below.
Bitcoin today touched lows of $6289, on a day when its RSI reached 26.4, figures last recorded in 2016. That figure indicated that BTC had gone past its true value and that it was ready for a bounce back.
Bitcoin’s latest price drop
Bitcoin prices slumped on Tuesday, undoing Monday’s brief recovery after Sunday’s crash. It dropped to a new 2-month low price of $6,168 as the pressure told. It threatened to slip under $6k, a price point that would have marked almost 55% loss in value in 2018.
It may be getting worse in due course as news emerge that prices were likely manipulated in 2014 and 2016. Whether that will be too much for the leading crypto, such that we see another tumble will be apparent sooner rather than later.
The persisting negativity cements the regulatory air that has gripped all cryptocurrencies, in addition to the latest hack of an exchange. South Korea’s Coinrail may be a small exchange but its effect alongside the threat of regulations has been enormous over the last two days.
More negative news!
It has been known for a while that regulators were looking into possible Bitcoin price manipulation allegations. While the authorities are yet to bring forth their reports, one has already concluded that indeed it did happen.
The University of Texas report reveals that what led to BTC price surges in 2017 was a result of price manipulation. It puts Tether and Bitfinex at the center of that saga, showing that the stable coin participated in price manipulation. As long suspected, the study suggests that Tether releases were done after a market downturn. It led to significant price gains for the crypto.
Whatever happens now and in the near future is a matter of what, when and to what effect. Prices could recover and rally once more or dip again and make $4,000, $3,000, or even $2,500 the real bargain.
Is it time to buy some BTC?
It’s simply very difficult to tell what is likely to happen in the next couple of days. The savvy traders may try to play along and go for the short-term gains. However, opinion is that BTC will bounce big time. And thus, adopting a long-term strategy appears more alluring.
Even with the worst possible scenario, Bitcoin will likely recover and aim for the $10k price level. This isn’t actually long-term, but it’s an indicator of what could transpire. The last time the coin touched figures around this level, it rallied to hit a little over $11k within two weeks.
So, buying this current dip makes sense as it will definitely bounce to leave new investors with fat wallets. Alternatively, it would be prudent to hold out for a little longer. Bitcoin (BTC) has been predicted to hit values at least nearing its ATH in 2017. If it fails to break below $6k, holding out for $25k by end of 2018 still makes sense.