It has been a couple of rough days for bitcoin. From having been trading around $11,500 earlier this week, the price has dropped sharply in a short time. During Thursday morning (CEST), a bitcoin cost $9,467 at the lowest, according to numbers from Bitstamp.
This is a decrease of almost 18 percent and the lowest price since the end of July.
“The last time bitcoin dipped from around $12,800, the price bounced back again at around $9,300, which is close to the level we are at now. Such levels are usually called ‘support’ and occur because people, psychologically, think that the price should bounce back up at the same level this time as well. Not seldom, that is also the case”, says crypto expert Totte Löfström to Trijo News.
Part of the natural cycle
After the bottom at below $9,500, however, the price bounced back up again, and a bitcoin is currently trading at around $9,800.
Bitcoin currently accounts for 68.3 percent of the total market cap of all cryptocurrencies, according to Coinmarketcap, Coinmarketcap.
“Now it will be interesting to see if the price bounces”
According to Totte Löfström, bitcoin’s sharp price movements are nothing to be surprised about.
“One could see the decline of the last couple of days as part of bitcoin’s natural cycle, so now it will be interesting to see if the price bounces at around $9,000 or $9,300 this time too or if we fall through. In the latter case, the next real support is as low as around $7,500”, says Totte Löfström.
Other major cryptocurrencies such as ethereum, xrp and bitcoin cash have all declined over ten percent in the last 24 hours.
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