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Bitcoin prices fell on Thanksgiving Thursday, with the No.1 cryptocurrency falling sharply just as it was about to hit its first all-time high in about three years.
Bitcoins BTCUSD,
BTCUSD,
on CoinDesk changed hands at $ 17,207, down 11% on Thursday, but had fallen to an intraday nadir of $ 16,327.88. This means that the asset has lost more than 15% peak to peak in the past 24 hours.
The lower slippage for the leading crypto comes from flirting with its first all-time high since that of $ 19,783.21 reached in December 2017, according to Dow Jones Market Data.
Certainly, bitcoins have been an inherently volatile asset since its inception in 2009 and some specialists have appeared unfazed by the current pullback.
“Don’t worry, this is a healthy correction,” Naeem Aslam, senior market analyst at AvaTrade wrote in a research note Thursday. An asset is generally considered to be in correction when it falls by at least 10% from its last peak.
“Technical indicators have long indicated that a correction is coming and now the price is returning to its 50-day SMA [simple moving average] on the daily calendar. The pace of the current selloff is good news for Bitcoin as it has pushed the RSI [relative strength indicator] in the oversold zone over the 4 hour period, which has not happened since September, ”analysts wrote, referring to measures of an asset’s price momentum and strength.
David Madden, market analyst at CMC Markets UK attributed the bitcoin retracement to so-called profit-taking, with investors selling after a massive gain this year in the world’s No.1 crypto.
Indeed, bitcoin is up almost 140% so far in 2020, while the Dow Jones Industrial Average DJIA,
is up 5% so far this year, the S&P 500 SPX index,
gained more than 12% over the same period and the Nasdaq Composite Index COMP,
has grown 35% since the start of the year. OR OR,
Meanwhile, has climbed 19% so far this year and stages a reversal of much of its rally with the emergence of viable COVID-19 vaccines.
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Yves Lamoureux, president of Montreal macroeconomic research firm Lamoureux & Co., told MarketWatch earlier this month that bitcoin was facing a pullback and that a significant drop in cryptocurrency could be cathartic, opening the way way to a further rise.
He said at the time that a decline in bitcoin prices to around $ 13,000 or $ 13,500 was possible.
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Yet globally bitcoin has seen a huge uptrend.
The renewed surge comes as cryptocurrencies are raised by growing interest from the general public, as central banks assess the case for digital currencies and payment platforms move to include them.
Additionally, major investors, including hedge fund luminary Paul Tudor Jones, have become supporters of the asset, describing its recent rally in a CNBC interview as in its “first innings.”
Critics of virtual currency say its primary use is in criminal acts, like money laundering, and others warn that its value could drop to zero at any time.
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