Bitcoin is getting drubbed this year, so it does not take much to convince crypto market observers that the marquee digital currency is in a bear market. Plenty of technical analysts confirm as much.
The largest digital currency by market value still resides near multi-day lows, prompting some crypto market observers to speculate there could more near-term price erosion. Over the short-term, it is critical for bitcoin’s fortunes that some positive sentiment emerges so that bullish traders have reasons to reenter the market.
“Veteran Bitcoin analyst Willy Woo insists that bitcoin is still in the middle of a bearish trend. This contradicts the opinions of some experts who believe that the sell-off period has already come to an end, therefore expecting a bull ride to kick in,” reports CCN.
Some traders are concerned that if bitcoin slumps below the technically important $6,000 level, selling pressure from there would intensify.
“Since January 2018, bitcoin and the cryptocurrency market in general have been in a significant downtrend. This trend has seen the largest cryptocurrency lose over 65% of its value, and the market capitalization dropping from over $297 Billion to about $112 Billion as at the time of writing,” according to CCN.
Related: A Concerning Bitcoin Price Prediction
Concerning Price Erosion
Bitcoin’s all-time high of around $20,000 was seen in December 2017 and the digital currency has not even been close to flirting with those levels this year. Some market observers believe a return to $10,000 anytime soon will be challenging.
“Many speculators who invested in the cryptocurrency market in the course of the bull run have counted their losses and pulled out based on declining value. Others however have continued to hold onto their positions in anticipation of an eventual recovery. Whether the wait is a normal trend of occurrence or not in the bitcoin market cycle remains a subject of individual interpretation based on available information,” according to CCN.
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