Bitcoin prices experienced a bit fall this week. This drop cause additional sufferings while pushing it lower. The world’s largest crypto currency Bitcoin experience steady drop in its price value after its hit the highest value $20,000 in market last year. Since then it continue to drop further every week on the CoinDesk Bitcoin Price Index (BPI). James Song, founder and CEO of blockchain startup ExsulCoin says,
“We have crossed over into bear market territory for cryptocurrencies, driven by widespread acceptance of market manipulation and the siphoning of capital from market participants,”
Bitcoin continue to push lower
Crypto currency is being highly speculative is quite risky for investors. Bitcoin following a bearish pattern this year, rising slightly and then experiencing a modest loss later on. The digital currency rose to a weekly high of $6,810.90 at 23:15 UTC (7:15 Eastern Time) on July 7, after starting out the day at $6,600.99, BPI data reveals. Bitcoin prices then proceeded to fluctuate between $6,600 and $6,800 over the next few days, before hitting a local high of $6,791.59 on July 9 and then declining.
By 23:30 UTC (7:30 Eastern Time) on July 12, the cryptocurrency had reached a weekly low of $6,087.73, roughly 10.6% below the weekly high. The pattern has followed the previous week trends, failing to regain the key price of $7,000. Jon Pearlstone, publisher of the newsletter Crypto patterns says, “Patterns followed the path we shared last week, failing to regain the key $7000 level”. “The waterfall pattern we’re following is now calling for a wicked sell-off.”
Bitcoin is suffering more losses
Trevor Gerszt, CEO of Coin IRA, also commented on the situation, speaking to the factors driving Bitcoin’s price movements.
“Bitcoin is suffering under some of the same pressure that affected gold at one point, namely that it is still an alternative asset that doesn’t make up a huge part of most portfolios, so it is one of the first assets to be liquidated when marginal investors need cash,”
“We’re seeing a decline in Bitcoin trading from China due to the government’s crackdown, and a decline in trading due to less-serious investors leaving the market and so the combination of these factors is putting downward pressure on Bitcoin prices.”
Predictions don’t look good
Several analysts have made forecasts regarding crypto currency marketing trend and it doesn’t look good for investors.
“Unless we see sustained prices above $7250, the coming months may test the resolve of even the most committed crypto bulls. senior market analyst for social trading platform eToro Mati Greenspan “Another leg lower probably wouldn’t surprise anyone at this point”. “The downward trend does seem to be slowing down but it is still prevalent.”