City & Business News Bitcoin nosedived – but don’t panic: It’s not that bad The wood beneath bitcoin as it shuffles across a financial trapdoor has spent 24 hours creaking and splintering. Panic began to spread among some investors yesterday when a sudden drop off from a steady $3,410 plunged vertically to $3,360 and the haunting cries of “CAPITULATION!” began ringing around the crypto community. Bitcoin wasn’t alone in the sudden nosedive. PUBLISHED: 13:00, Thu, Feb 7, 2019 | UPDATED: 13:55, Thu, Feb 7, 2019 0 It was only two weeks ago that bitcoin dropped by a hundred dollars overnight (Image: Ulrich Baumgarten via Getty )
Cryptocurrencies across the board – Ethereum, Bitcoin Cash, Litecoin, Cardano, EOS, Ripple, the lot – all took a serious price hit and fell down a step to the next level where they flatlined for much of the day.
It was only two weeks ago that bitcoin dropped by a hundred dollars overnight after a sustained period of sideways movement as it recovered from a serious bout of volatility.
It had remained solidly clinging to the $3,400 line, leaving some speculators to believe it was coiling for a huge recovery spike. Alas, those hopes were dashed as it tumbled yesterday, taking all the major altcoins with it.
This failure to pick up from the rollercoaster of volatility which ensued in November 2018 – coincidentally at the same time as the Bitcoin Cash hard fork – could be down to one, or indeed a combination of many factors.
Bitcoin loitered for much of 2018 at $6,500. It was a far cry from the previous giant highs and massive lows of the previous years which had seen many smart investors make and lose vast fortunes.
That sideways movement with very little sway to the north or south of $6,500 took the wind out of the sails of mass interest in the original crypto. Related articles Bitcoin assets worth BILLIONS of pounds LOST forever when users die
The fallout in November created a little excitement, but the flatlines that followed have done little to reignite curiosity.
So, despite the whispered promises of a reboot this week, BTC slipped down another step like a hopeless drunk struggling to get upstairs to bed at the end of a heavy night.
Taking all that into account, the finger of suspicion is now pointing firmly at market apathy.
However, according to one of the crypto world’s most respected voices, there is no reason to panic.
“Apathy is a natural part of any market cycle,” says Mati Greenspan, a senior market analyst at eToro.
“Optimism, excitement, fear, denial, and then apathy – it’s natural and it’s necessary.”
He also suggests talk of – or attempting to predict – a capitulation is largely futile, as he says it’s not possible to recognise capitulation until you’re moving away from it.
“Only once the market starts going back up can you say what or when capitulation was,” he added.
“Bitcoin obviously doesn’t like these descending triangle patterns, and the critical support now looks to be at $3,000.
“But there’s nothing to get flustered about – what we’re seeing is that bitcoin is now returning to its proper valuation in terms of world opinion.”
Coin Rivet a website bringing news, information, analysis, opinion and insight from the fast-moving blockchain world. Related articles.
