Bitcoin has fallen to below $8,000 level. It is the first time in three months that Bitcoin has backtracked to around $8,000. Market watchers countered that it was a “buy timing” and that it was a harbinger of a fall.
According to CoinMarketCap on the 27th, Bitcoin was $8,051 as of 12:19 p.m., down 4.47% from the previous day. The trading volume stood at $19.3 billion, down $700 million from the previous day’s $200. Bitcoin, which stood at $9,580 at midnight on Saturday, fell about $1,500 in just two days.
“After Bitcoin and dollar trading pairs fell from $8,440 to $8,057, they fell from $8,060 to $7,986 again,” the investment analysis website FXStreet said. “If you look at the time-to-hour decline, they are generally forming a trend in the $840.”
Some say that the decline in bitcoin is due to the due date for payment of bitcoin futures trading by Bakkt. Bakkt is a trading platform operated by the parent company of NYSE. The platform released a real-life Bitcoin futures contract on Monday, dividing it into two categories, one-day and one-month. Possibly, price volatility has expanded as payments for one-day products have continued.
Bitcoin fall = time to buy?
Some view the decline as a buying opportunity. “The cryptocurrency market could enter a new downturn as a bitcoin plunge raises fears of dumping in the market for a certain period of time,” said NewsBTC, a media outlet specializing in cryptocurrency.
But it also added, “If you look at historical trends, the crash of cryptocurrency shows signs of recovery just like the previous price cycle, rather than a long-term decline.”
“Bitcoin is currently at a level similar to the recovery period between 2011 and 2013 and 2015-2017,” cryptocurrency analyst Yassin Elmandra Tweeted. “It has recovered to 40 percent of its peak within 284 days.”
On the same day, the cryptocurrency market is on a downward trend. Ethereum, the second-largest market cap, fell 2.17 percent to $165 over the cited period. Ripple, Bitcoin Cash and Litecoin were down 2.16 percent, 4.67 percent and 3.07 percent, respectively.
