Bitcoin price continues to plummet amid marketwide bloodbath
The last 7-day stretch has seen Bitcoin lose nearly 14% of its value.
- Following its run-up to an all-time high of AUD$4 trillion a fortnight ago, the total market capitalisation of the crypto sector has dipped to AUD$3.44 trillion.
- Experts believe that the ongoing dip could be temporary and that a major bounce-back could be witnessed soon.
- BTCs market dominance index (DI) currently stands at 41.1%.
After having held on to a price target of AUD$82.5k (US$60k) for a few days, Bitcoin, the world's largest cryptocurrency by total market capitalisation, has continued on its path of downward descent, losing a staggering 7.4% of its value over the last 24 hours. At press time, BTC is trading for AUD$77,000.
Providing his take on what's causing all this ongoing volatility, pseudonymous independent analyst Rekt Capital took to Twitter claiming that all indicators suggest that we are currently in the middle of a "strong market-wide sell-off" and that the coming few days could see a strong trend reversal. In this regard, he further explained:
"Undoubtedly, seller exhaustion lies ahead. Watch for high sell-side volume bars in the short term. These tend to signal bottoming out after constant selling and precede either a strong bounce or an entire trend reversal."
He closed out by saying that the current scenario seems to be mirroring the market mood that was prevalent back around the second week of September when the value of BTC dropped by US$10k almost overnight – an event that was followed by a sharp value surge.
When will the madness end?
As Bitcoin continues to plummet to new depths, there are many investors anxiously waiting to see where Bitcoin finally bottoms out. Renowned crypto pundit Michaël van de Poppe believes that Bitcoin should find its relative-price floor somewhere around the US$56k range (approximately AUD$77k), which can follow a sizable price rebound.
Sharing a somewhat unique perspective on the development, on-chain data analyst Willy Woo opined that this current turbulence should not be looked at as a sign of bearishness but rather a small bump in the road. In fact, he called investors to "buy the dip" because he believes another such opportunity may not come by anytime soon.
Is this the perfect time to accumulate?
As per a brand new report from cryptocurrency research firm Delphi Digital, the ongoing sell-off seems to be emanating from a series of liquidations rather than any sort of fundamental shift in BTCs technicals. This suggests that the pullback should be a temporary one. In fact, the report goes on the claim that the ongoing dip presents traders – especially HODLers — with an "attractive entry point" to gain more market exposure as well as maximise their holdings. It remains to be seen what lies ahead for the market.
Disclosure: The author owns a range of cryptocurrencies at the time of writing.