Following the crypto market as of recently has been quite a ride. For many, the recent drops and falls in price have led to some sort of panic amongst traders who specialize in cryptocurrency. However, if we truly look at the price action and how it’s moving, it might be actually just corrections in a seemingly very bullish market. Cryptocurrency has been growing in development, ability, and many other things that have contributed to its over zealous price action. People are finally starting to wake up to the fact that cryptocurrencies could possibly be the future of money, and could take over fiat currencies as a whole. Bitcoin specifically reached a near of $4900, nearing the $5000 mark but couldn’t pass over. The price dropped over 6% in less than a day and reached lows of $4450 which caused extended panic in the community. People started panic selling, one of the worst things that one can do in the cryptocurrency market.
After these drops occurred, we saw the same thing that we’ve seen again and again and again with Bitcoin price; it bounced back from the lows it attained. After reaching $4450, the price bounced back up after a sharp decline. We’ve seen this happen very often with Bitcoin for multiple reasons, for one, we can look at the fact that knowledge of widespread awareness of Bitcoin has reached new heights never before attained. Bitcoin has gained huge traction within the past year, receiving support from some of the biggest political figures in the monetary market, including Janet Yellen, and even tech mogul and the most wealthy man in the world, Bill Gates. In addition we’ve seen a huge increase in the altcoin market. Trading volume for altcoins has reached all time highs with some alts nearly quadrupling alongside Bitcoin. Altcoin trading has boomed within the past year and has shown huge promise with ever increasing amounts of ICO’s.
Bitcoin has some extreme support around the $4500 areas and some resistance areas in the $4750 area and $4950. These are both milestones that need to be passed to solidify Bitcoin’s price above $4500. These are happening because there is still some uncertainty in the air about whether or not Bitcoin is a bubble, so some investors and traders have limit sells around these areas for secured profit. All in all, in the cryptocurrency, traders should aim for profit and profit only. With a very bullish market, we have to keep in mind the fact that this could turn into a bearish market at any point, so securing profit is a must in any situation. This is why we can see some huge resistance at the 900s area, because passing $5000 in price mark would be a huge milestone that would attract lots of buyers.
However, if price action breaks through the $4500 support areas we would probably see an overextended decline to lower areas such as $4200 or so. Bitcoin has shown extreme potential in its ability to bounce price action declines, so trading wise right now while price is low this may be a perfect opportunity to purchase some coin before another bounce. If you’re one to trade hourly or daily, this would be a great opportunity. It’s very doubtful that Bitcoin will stay in the lower $4000’s areas as it has already showed momentum and potential to rise above $5000, so while price is in the lower 4’s, this could be your opportunity to make some quick profit as this bullish market doesn’t seem to show signs of stopping with the influx of positive news.