Volatility is one of the major characteristics of the crypto asset which crypto enthusiast/developer resolve by the introduction of the stable coin still this never rule out the volatility in the market.
This week started with a boom in the crypto market and the bull market was on its way to ATH until the early hour of Thursday 26th Nov. 2020 when Bitcoin and every other major of its peers were affected with a huge decline which cut many crypto enthusiasts unaware, still as a crypto trader, there are indicators that show future when analysing appropriately.
Pandemic (COVID-19) affected the price action of everything including crypto-asset which in fact stirred fresh doubt about cryptocurrencies bull market this year, but the story changed. We soon forget where we are coming from to where we are!
Yes, Bitcoin slipped about 2.6% $16,613 before paring the decline and the Crypto index of Bitcoin since Wednesday has reached 14% drop which is the biggest two-day plunge if we are to flashback to March and this is a notion that all the gains notched early this week has been erased and is not that the general market is affected if you look at it closely.
Do you ask what's the cause?
Do you remember the crypto slogan: "Buy the rumour, sell the news"
The application of the above seems applicable this week when the US administration set for a new rule to speed up the implementation of regulatory controls around self-hosted crypto wallet and crypto sell-off was kicked off by this worries. As I said, if evaluate the price of Bitcoin as at today, Bitcoin has more than doubled this year despite the slump.
Will Bitcoin down further or Set for ATH?
Let's apply fundamental analysis this time before looking at technical analysis.
In 2017, we experienced big swings from $7,000+ to ATH of $19,511 unexpected. With the history, it's likely we experience a pullback in price action before any significant degree in the price. Where will the support be? Do you ask?
Won't be surprised to see Bitcoin at $9,000+ before we experience that huge spike on its price and the pullback won't really affect experienced Bitcoin trader/holders because they understand the fundamental and technical analysis behind the asset.
With what is happening in crypto space this time as against 2017, there is the possibility to see Bitcoin price action above $20,000 anytime soon, but there will still be pulled back before this happens. Just last month (October 2020), we recorded that Paypal Holding ready to give their customers access cryptocurrencies. Even JPMorgan launched a Bitcoin exchange-traded note and so many fantastic news that can spike the price of this asset.
As speculation is one of what traders in crypto space makes use of, the question is which position are you?
Are you in for short term or long term?
Do you hold any crypto asset and know its use case?
According to what Oliver said: Money printing and debasement of paper currencies will soon fade away, you may be thinking how and when, but it will definitely happen.
crypto is the future of money and blockchain is pathing the way, it is high time to take a position if you are not yet there.
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