The shockingly fast breakdown of Bitcoin which started to slide last week after breaking below $6,000 has continued lower – now down 25 percent in seven days. It was last year, the same Thanksgiving weekend in which Bitcoin rallied toward the $20,000 level in December before starting a slide, mostly moving lower throughout 2018. Since the peak, Bitcoin lost about $700 billion in value, according to CoinMarketCap.com
The digital asset fell to a low of $4,119 on Friday, the second big move in seven days. The second largest coin, Ripple/XRP fell 6 percent on Friday. Ripple has fallen but relative to other large cryptocurrencies is holding up rather well, and as a result is attracting more attention now.
Note that Ether was down 7 percent in 24 hours on Friday and lost a total of 30 percent for the week. Ether has had problems in the past 4 months of trading clearly showing that its investor base is fading. This coin has been shockingly volatile in recent months. The cryptocurrency “fork” is now to blame for Bitcoin`s troubles and the battle, the fork battle, actually started in Tokyo, Japan.
In addition to the fork issue that started in November, the regulatory crackdowns have been weighing heavy on cryptocurrencies. The Securities and Exchange Commission announced its first civil penalties against founders of coins last week, making this the first industry wide crackdown. The SEC seems to be making a point of bringing people to jail. Why not? This is great for the future of the ecosystem.
Charts show Bitcoin falling hard and fast. Do we buy it here? Do we buy these levels?
We suggest that you study and start looking to trade as the sell-off has been too fast and too deep. From a long-term point of view, this market seems to searching for a bottom and will likely trend higher in the coming weeks and months.