Weekend trading for cryptocurrency investors is off to a shaky start, with Bitcoin dropping more than 16% from $52,000 to $43,500 in a matter of thirty minutes, according to CoinDesk.
At the time of publication, the leading cryptocurrency had recovered from its recent low point and was trading at around $47,190.
Bitcoin’s unexpected collapse triggered a chain reaction in the cryptocurrency markets, with Ether falling from $3,983 to a trough of $3,497 in the same timeframe.
According to the statistics firm Coinglass, the crash resulted in $2.41 billion in sell-offs throughout the cryptocurrency market.
Tone Vays, a Bitcoin bull, and trader believe it is too early to predict if $43,500 will be the bottom for Bitcoin.
Vays inquires as to whether this [at $43,500] represents the absolute low. He expresses his hope that this is the case but notes that at this time there is insufficient data to support it. Furthermore, he feels that we must give it more time.
Still Retaining A Bullish Stance
Vays is positive on Bitcoin, and he believes that the moment has come to test if the cryptocurrency can soon return to the $50,000 range.
He stated that, theoretically, we ought to rally back to the breakage location. However, we are not required to do so. That was a significant decrease.
Nevertheless, at the right moment, he is more positive than pessimistic about the market. And he would prefer to go long instead of short in a trading contest. He went on to remark that this is often how markets reach their bottoms. And he hopes that some people will purchase this dip.
According to Vays, when looking at long-time scales, Bitcoin has not reversed its general bull trend.
He said that we’re still in the midst of a general bull market in this country. We are not in imminent danger of entering a bear market, so we should avoid shorting at any time during a bull market…On a long-term moving average, the weekly chart appears to be in good shape, so let’s make sure we maintain this moving average.
Previous Predictions From Analysts
Bitcoin’s (BTC) slump continued a few rungs lower on December 3 as the price fell below $54,000. Traders might have taken note of the significant increase in sales volume shown on the BTC/USD daily chart on the same day.
Investors are alarmed by the appearance of a new COVID-19 version as well as hawkish statements from the Federal Reserve, according to recent reports.
Meanwhile, seasoned finance legend Charlie Munger added fuel to the flames by drawing parallels between the price activity in the cryptocurrency market and the dot-com period, which culminated with the bursting of the dot-com bubble.
Experts predicted that after Bitcoin breaks out of its current trading range, the most apparent support constellation sits around $52,000 to $53,000, which is close to the place where the price collapsed during the May crash earlier this year.