Is It Time To Panic Over this Bitcoin Selling? No!
In the past 24 hours, the price of Bitcoin (BTC) has taken a big dip with a decrease of over 10%. Bitcoin is not alone however, as other coins and tokens have taken a huge hit. There are reasons for the selloff, but an important thing to note is that Bitcoin is still hanging tough, keeping support and staying in trend.
Bitcoin’s trend as of this year has been an ugly one. It has steadily declined, struggling to find support along the way. Many naysayers have been rejoicing, claiming $1000 was in sight, but so far they have been wrong. Bitcoin has pulled back, which some consider healthy since its meteoric rise, and found support at $5500-$6000. An unfortunate number but still support.
This latest move is consistent with its trend. It tests the 7000s, even the upper 7000s then pulls back. The chart show the downward triangle the asset is trading in now. What is a good sign is that so far, support of 6k is holding. It is unfortunate the action was fast, but only time will tell if it will break support which may get ugly. Another good sign is that MACD is rising, showing a little divergence from the price action which seems bullish. Keep in mind, there could be a quick dip before a nice strong rebound.
As for why we have had this price action today, there are several reasons. One thing that has traders spooked is that Goldman Sachs has shuttled their plans of a crypto trading desk. They ere a fairly strong, vocal support of cryptocurrencies so this has definitely spooked traders. Another issue is analysts have noticed that certain wallets are being loaded with Bitcoins, a usual sign that some selling and off loading may be on the way. The latter now seems unlikely with this selloff. Most good traders and investors will sell into strength, thus securing profits.