Bitcoin fell below the support level of $6000. The recent optimism concerning the growth of Bitcoin turned out to be insufficient to encourage investors to keep the tendency.
Traders didn’t react on the positive numbers Bitcoin demonstrated last weekend. It started to gather pace, recovering from the low level around $6000 and flirting with the $6500 index at the beginning of this week.
According to Bitfinex charts, Bitcoin has temporarily fixated on the level $5960, recovering a bit from its today’s minimum of $5858 (at the time of article writing).
This significant price movement dropped the coin way below the expected support level of $6000 defined by the Canadian Rivemont Crypto Fund in their carefully optimistic message to investors.
But if we consider these movements in the perspective, we will remember that Bitcoin has been reaching $6000 several times since February this year. And recently, June 24, the cryptocurrency fell below $5800 which became the lowest index during the entire 2018 year.
Everyone acquainted with Bitcoin for at least a year understands that cryptocurrency is subject to crazy price fluctuations. After all, in December, it reached $20 000, and a week later its price reduced by 50%.
One can say that Bitcoin flew up too close to the sun, but this would be a simple answer. If we consider some details that preceded its growth, we can see the price drops similar to those we are witnessing now.
May 27, 2017, Bitcoin collapsed from the then bullish $2728 to which it had grown during the two previous days from $2000. Almost half of its price was lost during the 48 hours due to the cascade panic effect.
In several days, the coin immediately and without notice returned to the previous levels and continued its growth until the middle of June where it almost reached $3000.
Later on, the price dropped once again, and the market stayed even until the start of the next fall, which started on July 13 and caused even bigger price collapse, up to $1880 in three days.
This is all the matter of perspective. Investors will always panic, bots will reduce prices, and the regulators will get involved. But we should remember that volatility is a number one factor on the cryptocurrency market.