Bitcoin Crashes Below Support Line – Panic Selling Strikes the CryptosSeptember 6, 2018
Since Bitcoin crashes below support line, Investors are resorting to panic selling to save their stakes.
The dramatic collapse in the price of the major crypto currencies on September 5, 2018, Wednesday still stays unexplained.
Matthew Newton a market analyst remarked, “We’ve seen the price yo-yo for several months so I’d be hesitant to herald this as a new dawn just yet… Traders should be cautious.”
Analysts are studying the reasons behind the crash and the reasons are not clear yet. The fall of Bitcoin by 4% which is a hard hit on the digital currency influenced the negative on Ethereum, Ripple, Bitcoin Cash and EOS. A 10% fall followed by the confusions in the perceptions of investors.
The crash was unexpected. Bitcoin Analysts predicted a price hike following the one-month high on Tuesday. This became a hard lesson for investors who have learnt that recent gains do not necessarily imply the price trends that is yet to happen.
Some are of opinion that there are Bitcoin Whales who might manipulate the price in a whim. The press in the past had some major impact on the market situation of Bitcoin; however, the currency has become somewhat immune to the media and press in 2018.
When the history of Bitcoin is looked back, it can be seen that there have been several drops in the past.
There was a reason in the past according to Purse where “one user alone was literally trying to sell more than the market could handle.” This is very bad to see that one single investor selling more than what the entire market can handle.
When we recall the Mt. Gox hack incident, we remember that the price of the Bitcoin fell from $17 through $0.01. The hack incidentally let to the theft of several hundred bitcoins out of the system.
The record high fall in the year 2011 on the 6th of August was thought of as being a loss that cannot be recovered for years. History has established and witnessed the currency re-bounce after chaotic fall.
Investor perceptions were considered. Those who were bearish have expressed that it is not worth the time and energy invested in the currency. Those who were bullish have expressed that this is just a minor setback.
The reasons for the losses have been blamed on bank crisis, investor perception, overall economic influence, governments, regulations and more. And each time, the digital currency bounces back. However, it is to be seen in the days to come as to how the market responds to the Wednesday crash.
Seasoned analysts; however, have to say that since the fundamentals are in favor of developments in cryptocurrency, despite the trend there are plenty of reasons for why one should be positive about the market trend. Regardless, a little time will be required for investors to establish their resurgence after the price crash.
The crash is not an inevitable collapse. This does not end the existence of virtual currency and its evolution. This crash might not be the biggest yet. This is a part of the evolution of the digital currency.