Yesterday was a big day in the Bitcoin world as the USD cost of Bitcoin crashed about $500.
Some said it was due to extra Tether being minted. Some said it was due to Mark Zuckerburg giving testimony in congress. Still others said that it was expected as the charts predicted it.
In my very unprofessional opinion (I don’t really know much about analysis at all), it was because it was.
As Bitcoin demand is not backed by anything concrete, the value is dictated by what people will pay for it.
Although I have little involvement in BTC, I did notice the crash yesterday and wondered myself why it may have happened. So, I turned to the experts to read their analysis. Predictably they didn’t know either.
However, I did notice that much of what they write is …well saying nothing.
Here are a few examples from 3 different places:
(Names and publications removed as not trying to lose friends or shame anyone. Seems to be a practice across the board)
Short Term traders then might still position for further downside, while long term investors should start preparing the eventual rally after current correction is complete.
What that means is:
If you think it is going to go up then buy Bitcoin. If you think it is going to go down then sell Bitcoin
If the market continues down-trend, the short-selling will likely accelerate again.
What that means is:
If the price goes down then more people are selling Bitcoin
A move under these levels could mark a clear loss in bullish momentum that may result in months of consolidation, or, what some fear, a macro bear trend that may take upwards of a year to resolve.
If the price goes under a certain point it means that it has stopped going up and may continue for months. Or alternatively, it could carry on going down which may (or may not) take at least a year to go up again
What is my point?
It is probably/possibly unfair for me to say that any analysis of Bitcoin is putting into more complicated words what the obvious already is. However, it certainly seems that way…