Bitcoin Analysts Explain What Will Happen To Bitcoin After Crash

Today things turned out for Bitcoin, just as a few cryptocurrency analysts predicted yesterday. The price of Bitcoin, which had reached an all-time high of $ 19,816, fell to $ 18,543. Then it recovered to $ 19,364 before falling to its current price, $ 18,936.

The big question: why and what is happening now? Decrypt asked the experts.

Charles Bovaird, analyst at Quantum Economics, said Decrypt that the simplest explanation is that, “after reaching an all-time high, traders took profits, which led to Bitcoin pulling out.”

In the bull run of 2017, Bitcoin fell after reaching each new milestone. On December 8, 2017, 10 days before Bitcoin hit its all-time high, Bitcoin fell to $ 13,630 just two days after hitting its second-highest price of that bull run, $ 18,268.

Of course, when Bitcoin hit its all-time high on December 17, 2017, it crashed so hard that it took three years to recover.

Eric Wall, chief investment officer at crypto investment firm Arcane Assets, said the drop was due to traders who were “too nervous” fearing that Bitcoin has already reached its peak. Not knowing when Bitcoin will go down, they cash in early to avoid losing all of their money.

Tim Rainey, chief financial officer of New York-based crypto firm Greenidge Generation, said Decrypt that it is “natural for traders to make more emotional decisions” when price enters uncharted territory.

He expects “some temporary declines in the short term”, but remains “optimistic that prices will rise to new highs in the longer term”.

Wall, the crypto investment manager, added that it’s not just fear that takes over traders – it’s also those who rely on their own complex business models. “Some are currently watching TA [Technical Analysis] patterns, such as double top formations or Bollinger Bands, to anticipate the next move, and many of these traders are convinced that they should follow what their strategy tells them.

Bovaird believes the price of Bitcoin will continue to fall if it rises further. “If you are asking if bitcoin will undergo retracements as its price increases, the answer is yes. Digital currency is very volatile and sharp price increases will naturally encourage some market participants to sell, causing setbacks. “

The unanswered question, however, is whether Bitcoin has already reached its peak and traders now have to endure a series of crises.

Wall believes Bitcoin will smash the all-time high of 2017.

“I can’t say if this is the last drop we’ll see,” he said, but it will take a lot of work to slow down the crypto market. “I expect any drop to be bought fairly quickly. When we do the real heartbreaking plunge, it will be on a considerably higher level. “