Bitcoin and cryptocurrency market chaos this week has caused panic among traders and investors who have been nervously waiting for a sudden move for months.
The bitcoin price plummeted this week from its recent plateau of around $10,000 per bitcoin to under $8,000–losing some 15% of its value in a matter of hours.
Now, as bitcoin technical data looks bleak and bitcoin bulls advise traders to “buy bitcoin at every chance” they get, the market looks as confused as ever.
The GTI Global Strength Indicator, which measures upward and downward movements of successive bitcoin closing prices—shows bitcoin isn’t yet “oversold,” potentially pointing to further declines, it was first reported by Bloomberg, a financial newswire.
Meanwhile, the founder, chief executive, and chief investment officer of Morgan Creek Capital, a U.S. bitcoin and cryptocurrency investment company, told traders to “buy the dip,” adding daily moves in the bitcoin price “don’t matter,” and should be ignored.
Yusko, who was speaking to CNBC, has previously said the bitcoin price could hit $30,000 per bitcoin before its next major pullback.
The bitcoin price has rallied hard so far this year as traders and investors cheered the likes of social media giant Facebook and iPhone maker Apple showing interest in bitcoin, cryptocurrency and bitcoin’s underlying blockchain technology.
Elsewhere, other market analysts said this week’s sell-off, which saw over $30 billion wiped from bitcoin’s total value, was likely not due to a change in fundamentals.
“When [the $9,100-$9,300 suport range] was broken, we probably saw some sell-stops elected and the whole thing began to snowball lower,” Matt Maley, equity strategist at Miller Tabak and Co, told Bloomberg.
The sudden market rout was put down to a lackluster debut for the hotly-anticipated Bakkt bitcoin and cryptocurrency investment platform at the beginning of the week.
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