This was supposed to be the time that Bitcoin’s price would begin ripping higher, according the predictions made by many analysts over the course of the first half of the year.
While many predicted Bitcoin’s price would at least be above $10,000 by now, that has failed to come to fruition. In fact, Bitcoin fell below $6,000 overnight Saturday, and was around $5,900 at the time of writing Sunday (New York time).
End of these dips
It was only a few days ago that we reported on a reputable analyst weighing in on price targets. Bill Baruch, the president of Blue Line Futures, observed that the days of Bitcoin’s wild price swings as nearing an end.
He said:
“I like to say that a bottom is a process, not a price. Now that the price and volatility have come back down to Earth, this bottoming process can begin. I see significant upside from here in the long-term.”
He added that for the near term, a bottom would occur more quickly and more constructively if the previous low of $6,000 per coin holds. He added that the 100-week moving average was down near $4,550, so traders will be watching that level.
[telegram-banner]
Writing on the wall?
Over the last few weeks, the crypto space has received blow-after-blow in terms of negative news. With each report, Bitcoin’s price slipped a bit. Good news, such as the U.S. Securities and Exchange Commission declaring that it would not regulate Bitcoin and Ethereum as securities, failed to propel Bitcoin’s price above the much-anticipated $10,000.
Instead, the news was mitigated by the much-ado news of hacks, and regulatory actions.
We told you about the hacks of Bithumb and Coinrail that occurred within weeks of each other. They easily-spooked traders in the crypto space who immediately started to sell their cryptos on the news of these events. This was especially the case for Bitcoin.
However, less than a week after the second hack, Bithumb, Bitcoin recovered a bit. It returned to trading sideways at the $6,700 level.
When bad news could actually be good
Then, on Friday, Japan’s Financial Services Agency (FSA) sent business improvement orders to six local crypto exchanges after an inspection that discovered several issues, including problems with their anti-money laundering (AML) systems.
We reported that one of the targeted exchanges was Japan’s biggest operator, bitFlyer, which was found to have security problems, according to the FSA.
Settle down
The following chart adds clarity about Bitcoin’s performance.
Despite this chart’s ugliness, there’s at least one player we’ve quoted repeatedly due to his optimism about cryptos, who pretty much said crypto players should settle down. That’s Bitcoin guru Brian Kelly. On the news of Bitcoin’s price dipping below $6,000, he said this may be good for Bitcoin.
“When we start to declare a funeral and things get really horrible, sentiment is approaching the lows. So hopefully, we'll use that funeral bug to say, 'Hey. You know what? That was near the lows.'”
This article appeared first on Cryptovest
