Bitcoin is down another 10% today, falling from around $10,200 to a recent low of $8,700, seemingly breaking its support level after many attempts.
It’s the lowest price bitcoin has seen since November, and more than half below its all time high of $20,000 reached in December.
It’s trading volumes are considerably down to $8 billion, far lower than the $40 billion or so it handled a few weeks ago.
With the currency seemingly now in a downtrend after its stupendous rise for much of 2017 when at least in brand name it went very much mainstream.
How low this will go who is to know, but some are seemingly eyeing $5,000, a 75% drop from its all time high, although time alone will tell.
The above looks very much like the classic chart many of you would have seen. There is the return to normal and now seemingly capitulation.
We haven’t yet really seen despair, but as with astrology the trick of these charts is that you hardly ever know where you really are, thus they seemingly say plenty, while potentially saying nothing.
Because, of course, no one can predict the future. So, addressing “fundamentals,” well nothing has really changed for bitcoin in one level. It was expensive in fees, very slow to transact, and in some ways outdated when it rose to the high just as it is now.
So you could say none of those are a factor to explain the recent price movement, but on a wider level its debut to the global stage might have allowed many newcomers to see first hand just what this is and how it works.
Newcomers who might have very quietly thought the technology is too slow and too expensive to transact, nothing like what they were told. Thus might have left the space fully, or might have gone to competitors, like ethereum.
Another aspect that may have changed is futures. Whoever thought bankers were any good for bitcoin, might now think so no longer.
The global ongoing political debate on how bitcoin is to be treated is on-going, so that might not be a factor, but the divisive politics within the bitcoin community might have sent productive members to other cryptos in a brain drain.
Yet ultimately, our verdict is the simplest. It rose too high, too fast, everyone got far too drunk, the music reached volumes of deafening, so they went to sleep and woke up with a headache.
How long that headache will last, time alone will tell us, just as it will say whether it will be more widespread than only bitcoin, or whether eth will now get up and dance.