The record low price of Bitcoin in 2018 was broken today with a sharp drop in price below $ 6,000.
Yesterday, the price of Bitcoin fell below $ 6,000, and today (July 3), this digital currency set a new record of falling in 2018 after reaching below $ 5,900.
In February 2018, the price of bitcoin fell sharply, from about $ 8,000 to near $ 6,000. However, today (June 24) the decline in the price of digital currency continued below the level of $ 6,000 and reached the price of November 2017 for the first time.
Similar to 2014
The downward trend in the price of digital currency is almost the same as the price decline we saw in 2014. Exactly the fall for Bitcoin in 2014 and 2018 are not much different. In 2014, similar to this year, the price of Bitcoin at its highest level was faced with an 80% correction in the price or the same fall. According to this point, the general cause of this fall can be considered as the bursting of the retail investment bubble.
From May 29 to June 10, we saw a return and stability in the price of Bitcoin and other digital currencies in the market for 12 days. But on June 11, the price of Bitcoin plummeted from $ 7,700 to $ 6,670, marking the beginning of the free fall of the king of digital currencies to $ 5,000.
This downward trend is very much in line with the late May scenario presented by digital currency researcher and investor Willy Wu. In this scenario, bitcoin fell to $ 5,500 due to severe instability in the digital currency market and low daily trading volume in bitcoin.
Read more: Under the pretext of the recent fall of Bitcoin; Take a look at the great ups and downs of Bitcoin history
Currently, some traders see the Bitcoin price floor near $ 5,000, while others believe it will fall below $ 5,000. However, as long as there is a medium-term recovery for Bitcoin and we do not see any other negative signs, it seems unlikely that the price of this digital currency will fall below $ 5,000.
In addition, the drop in the price of Bitcoin from its record $ 20,000 to the $ 5,000 price range indicates a more than 75% drop in the price of this digital currency. If this downward trend continues, the bitcoin price correction situation will be worse than the 2014 correction
Given the competition and demand in the digital currency market among public investors, it is very unlikely that Bitcoin will be traded below $ 5,000.
What will the Bitcoin situation look like at $ 5,000?
Among public market investors, especially Wall Street investors, a commodity that has a 70 to 80 percent price reduction in the short term provides a good opportunity for long-term investors, as they will be able to invest in the next 12 to 24 months. Make a significant profit. Bitcoin underwent a series of minor improvements from 2014 to 2018, after which it often reached a staggering price increase of several hundred percent.