Bitcoin plunges below $2000, what's going on?

in cryptocurrency •  7 years ago 

Markets have been seeing red for some time now, however, Bitcoin had largely been mostly immune, until today.

Today Bitcoin fell below the $2,000 level for the first time in almost 2 months, 49 days to be exact.

The entire market value of the crypto space has fallen by almost 39% from the highs of around $115 billion in June down to $71 billion today.

This is the lowest total market cap for the space since May. 

Basically we are seeing a correction of massive proportions. 

What is going on?

Concern over the recent price action: 

When polled, analysts that cover the space stated that the charts and momentum were showing something like this was coming for Bitcoin for some time now. The entire space has been drifting lower over the past couple weeks with Bitcoin sliding the least amount. Today, Bitcoin finally joined the party.

Market fatigue:

This was also mentioned as a possible cause by those same analysts. Whenever you have a market that has run up as quickly and as far as the crypto space has over the past couple months, it is due for some kind of correction at some point. When the buyers run out there is no one left to keep the run going, and then profit taking takes over. 

The elephant in the room:

The above reasons are pretty generic and they certainly are possible causes for what is going on, but the main reason likely has to do with one thing...

August 1st. 

A date that Bitcoin traders and investors know quite well.

That is the day we will find out if Bitcoin splits into 2 chains, 3 chains, or stays pretty much the same. The fact that it is completely unknown what might happen has traders and investors not wanting to hold Bitcoin through that date.

According to the founder of cryptocurrency exchange "The Rock Trading", Andrea Medri, it's exactly that:

"The selling could be due to people not being comfortable holding bitcoin because of the August 1st due date."

In fact some exchanges are even saying they won't process any Bitcoin transactions up to 2 days before August 1st because of the uncertainty over what might happen. Who wants to sit in something they are holding massive gains in through something like that?

Any time you have uncertainty, investors and traders tend to take chips (or coins) off the table.

(However, given all of that, where do you think we are on this chart?)

My thoughts:

I fully expect things to continue to be choppy up until that date with a downward bias. However, once we get passed August 1st and the world doesn't end, or something completely unexpected doesn't happen, I fully expect the entire space to rebound in a big way.

Which means...

@jrcornel is using this recent dip to buy any Bitcoin's he can under $2000, any Ether he can under $180, and any Steem he can under $1.

I think we will see much higher prices than this for all 3 later this year. 

Stay safe my friends!

Sources:

http://www.coindesk.com/bitcoin-price-drops-near-2000-crypto-markets-fall-toward-70-billion/

Image Sources:

http://www.cnbc.com/2017/05/25/bitcoin-surges-10-percent-to-all-time-high-above-2700.html

https://coinmarketcap.com/

http://www.coindesk.com/bitcoin-price-drops-near-2000-crypto-markets-fall-toward-70-billion/

Follow me: @jrcornel

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Buy, buy, buy

We will get a lower price before aug 1st. But yea I'll be buying lower from here. I'd start buying more at $1650

do you think that the price decrease more then 1500 before august?

I think it'll drop to $1,000 or lower by August. Bitcoin is simply flawed: https://edwineconomics.com/2017/07/15/the-inconvenient-truth-about-bitcoin/

I think it will down upto 1500 $ and then will start their journey to rise !

This is where I am back in. $1500

Wait for currencies to dip to the bottom, whatever that scale might be as we approach august, then we should have more clear situation of what should we purchase. I'm highly interested in Steem price. Let's hope this doesn't hit the community standard and continuous progress.

What might that bottom look like in your opinion?

Bitcoin shouldn't go below 1600$. And I don't see any reason why should we except dooms's day in august. This is crypto black friday.

Totally agree. I think that after Aug 1 until the Segwitx2 conundrum is properly dealt with, we won't see any major price action.

Well stated!

Not dooms day but defiantly some confusion!

It will be just around aug 1st. I'd be guessing amount but def lower

Yeah Steem and EOS will most likely see huge growth!

I got a lil tiny bit of EOS, I hope to get more soon for sure!

Yeah now is a good time to get some more before the FOMO sets in 😄 The creator of Steemit and EOS is a genius!

Have you read the TOS? I won't be buying nothing thanks.

I'm not familiar with the acronym TOS.

Before I invested my money in any cryptocurrency, I took a look at the historic price chart, I saw that BTC had a very volatile history, so I knew how it could go. I only invested money I was willing to lose and I bought at many different moments. Most of the investments are still in high profit zone, some I bought in June are now in red. But I knew this could happen. I'm still buying some coins at this moment. I buy coins from the projects where I believe in. And like I said, I know this could be e very volatile ride... I don't sell these coins, even when it seems prices are going down, nope, I'm a holder, a long term investor, red days are buy opportunities to me! As long if you don't sell with losses, you didn't make any losses! Do your research and invest wisely what you're willing to lose!

You are doing it completely the right way dude. It is small individuals trying to actively trade this stuff that are getting killed.

Thanks for confirming my tactic, always nice to hear! I wish you the best of luck with your investments!1

but what's the long-term game plan for bitcoin? it has too many fundamental issues in my opinion: https://edwineconomics.com/2017/07/15/the-inconvenient-truth-about-bitcoin/

Just everyone please have ur wallet offline. ESP around aug

whats ESP?

sounds about right :)

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I hope it goes back up soon, I feel like I'm the only person who's LOST money on Bitcoin :(

People are selling because people dont understand what a hard fork is, and why its necessary for the growth of bitcoin

People are buying high and selling low as usual...

really liked this article, the projected chart in particular :-) (although there were bubbles before the $100 range of course)

If you believe in the long term value, just buy little bits on any dip!
I bought today @ 0,95

One reason behind Bitcoin crashing is shutdown of the biggest dark market site - Alphabay. In case you didn't know, it was 3 times larger than Silk Road. Huge amounts of money, plus it wasn't just bitcoin. They supported BTC,ETH,XMR and planned to introduce Zcash as well.

One would hope the downwards momentum in price stops soon!

Good point. That is probably a big part of it as well. Thanks for the heads up!

Dam it! where will I get my meth and crack from now!

That dude on the corner!

Does he take Bitcoin? :P

Definitely tempted to buy more steem! If Ether goes down below 150 I might buy, and Litecoin below 35.

Yes, we may see many more bottoms till Aug 1st...

That is my hope ;)

Defiantly !

that's scary if you are HODL!

I am hodl but I am in this for years, I am not scared.

even more scary if you use in everyday for transactions. Because just trying to do some buisness and the transaction fees are already high, plus now that it is going down..ouch!

May I get your expert opinion on the bitcoin and steem price that is happening today. For me and my readers. Hope to see you in our conversation.

https://steemit.com/cryptocurrency/@yoda1917/steem-usd-crashes-through-the-ground-to-usd0-96563252-here-is-why-and-here-is-what-to-do

I agree, take advantage of the flash sales while you can and reap the benefits in the long run!

it's great news for investors when bitcoin reach is minimum point they all are going to buy it and hold for few month after that they will get huge profit every body knows that :)

"Before something great happens, everything falls apart" ...
It's probably the same for crypto-currencies.
To have "Ups", there are "Downs" needed ;)
Bright blessings.

Well, it'll fall lower than this. WELCOME TO THE RECESSION IN CRYPTO MARKET. Please fasten your seatbelts. Crypto market is in strong downtrend. Everywhere we can see the panic selling. Everyone is dumping their shares. Everyone is afraid of Segwit hype. No one wants to loose any money. So people are just converting their bitcoin into fiat.
Until 1 August, it ll remains the same and after that may and may be it can increase in price. GOD helps all those who have invested in crypto at this moment.

lol could you be more dramatic ! :)

Yes, I could be . But as far as the present crypto market conditions are concerned, this is enough :) Lol @cqdx

Crypto still safer than fiat right now. US dollar collapse is imminent.

Anything but selling is a good option. If you have cash it's a great moment to buy. I guess we'll have a fee crazy days during thr next two weeks.

Looking forward to better day s in the crypto currency world.

Better crypto days are ahead, but there is a long way to go: https://edwineconomics.com/2017/07/15/the-inconvenient-truth-about-bitcoin/

Something great is coming ahead, those who are panicking and selling all their bitcoins are the greatest looser. Once August 1st is over, we all will start smiling.

True

That is my hope as well. As long as something completely unexpected doesn't happen I think the space will recover nicely.

We have four more weeks of his wave! Everything should be going up by September and winter.

@jrcornel - Typically, a massive bull run is always followed by almost a 38-50% correction (as the wave theory predicts and I have seen happening in many stock/commodity markets). The patterns in bitcoin price seem to be following that as well. Sometimes the corrections are more pronounced - due to special factors like fears of a fork (as you have correctly pointed out), doubts of the Government stand etc. but I am sure that in the end, the basic value in crypto concept will carry it through and bitcoin will rebound back. I am hoping to be able to gather resources to buy when it is cheap. I think the correct time would be after another week or so since the downtrend may continue till 1 Aug per your reasoning. Thanks for this. Got me thinking about buying! Upvoted and followed you.

Though I have dabbled in conventional stocks, I am no expert in crypto - I am more into wildlife and travel (having stepped back from the rut of being a successful executive), I continued my observations today of nuggets of wisdom from wildlife and wrote a blog 'How to Chill - 🐵
Monkey Style' with my wildlife photos and musings with a twist
. I request you to take a look at it when you have time. Your comments, as always, would be an encouragement and incentive for me to make better blogs. Thanks

Good points, and glad I could help. I have been looking at that 50% retracement level as a possible good spot for the crypto space to hold up. That would be roughly the $55-$60 Billion dollar area, so a little more carnage to come possibly. I'll give your blog a look :)

$55 is my target as well!

@jrcornel - Thank you for your prompt reply and taking my viewpoint onboard though I am just a newcomer with not much knowledge of crypto.
Thanks for taking the time to visit my blogs. Really appreciate it.

@jrcornel I learned my lesson with Y2K.

As soon as I finish off the last few #10 cans from that pallet of Tuna I bought, I'm going to get in on this.

Haha! What are you looking to buy?

I'm really excited about Sta Rfleet I hear it's a real game changer. ;-)

HELLO friend it is good thing in btc world but it has some problems creator will solve them in coming days if btc divide into 2 than it is a big problem. if an other people want more info about btc please view this https://goo.gl/jucFzW

Nice write up. I'll resteem this one for sure. I have been focusing more on the newcomers as everything is more or less a bargain right at the moment. Go have a look at my blog, I would love to get your feedback on my articles. I'm definitely going to follow you... like a crazy ex.

Cheers,

Sean @seanengman

Best thing to do is to buy your Bitcoins a portion at a time, if you believe it will still go down don't wait buy 20% each week from now till August one, so that if it doesn't go down you have some and if it does you didn't purchase everything at the same high price and if you believe it will also rise do the same, don't buy everything now so that if it goes down you have a chance to buy at a cheaper price .Reduce your risk exposure.

Crypto has a huge future. Go long and you won't regret it.

go long in which one though? there are over 700 to choose from! some fundamental issues identified here: https://edwineconomics.com/2017/07/15/the-inconvenient-truth-about-bitcoin/

It's hectic times. I suppose all you can really do is wait it out and hope for the best.

you can see my blog why bitcoin is going down see at @affankhan

  ·  7 years ago (edited)

I think you are exactly right. If you follow any chart analysts, most of them are demonstrating that BItcoin is definitely in an upwards channel. Sure, there are highs & lows, but each successive low in Bitcoin is something like $200 higher than the last low.

Clearly, NOW is the time to buy in, because we have been in a downtrend for a while - so you're picking it up for cheap, and you'll be able to take some profits at the next high. If you hodl for a couple of years and don't worry about it, I have no doubt that cryptos - as a whole - will continue to go up at a rate better than the other financial instruments that are out there. Bitcoin has outperformed the stock market ever since its' creation. I'd much rather buy in at $2,000 per Bitcoin than $4,000. But, some authoritative analysts are predicting, over the long term, we'll be seeing BitCoin at $10K, $100K, and if you wait long enough it could go to, or supass $1M.

It's hard to wrap your head around that, or have faith in it like that - but any crypto which is related to graphene (do yourself a favor & google "graphene" if you don't know what it is already) is going to do amazingly well over the next few years. Players like Microsoft, Samsung, and Toyota would not be pouring BILLION$ into it without being sure it will make them a good profit. However, most people do not know how to properly do the research on cryptos - and they end up buying-into the "hype" surrounding it. This gives rise to the scammers who come in with their cyrpto-coins, pull a pump-and-dump, cash out, and leave noobs holding a worthless bag of BCC, or some other scam-coin. These events diminish the public faith in all cryptos - because uninformed people tend to lump them all into the same box, without having an understanding of which ones are good, and which ones are bad. This causes the ups and the downs, even in cryptos - because it is like something which resembles a currency at times, and a harder asset at other times.

You can say what you want but in the end of the day nothing beats CASH, cash is king. People cant grasp the concept of bitcoin and other coins. It's a shame. I keep hearing the market will go back up after the summer. Who knows? NO ONE!
:)

I'll send you my paper money ! And u send me BTC . 1HXonERncKQwMfCG3TuoutmUBZGQEhhonJ

lol

Cash is king ? R u joking ? Cash has lost value every decade since 1913

I couldn't disagree with you more.

Gold is king
Not paper

Bitcoin is the Gold of Altcoins, it's the gold of the new age

It's much more likley Bitcoin is the MySpace to another Crypto Facebook

Blockchain will change the world. A Crypto will be king. It is likley not the first one to the party. Bitcoin is not the best Crypto design wise and another will take its market share lead.

Cash is king for about the next week or so.

Hmmmmmm...
This whole scenario is getting more unpredictable as the day goes by... I hope and pray for the best outcome at the end of it all....

#cryptotradingalltheway

  ·  7 years ago (edited)

Probably a couple of factors but the upcoming segwit2 adoption is, I think, one of the biggest factors. Just wish some of the dumping would head over to buy ethereum. Ethereum seems to be following the Bitcoin trend. Maybe buy some STEEM :-)

Yes, everything has been dumping for a little over a week now, this is really the first time Bitcoin has joined the party in a meaningful way.

And we'll see much lower from here at least in the short term.

This entire thing is about Segwit, all the rest is BS. There is a lot of uninformed FUD out there.

  ·  7 years ago (edited)

Yes, I think so as well. Be interesting to see how many actually abide by the NY agreement and implement the 2mb hard fork within 6 months after Aug.1.

I just wanted to say to the elephants...

For newcomers the white looks a blood bath I believe we will never again see such cheap prices

Just buy and HODL! Anyone who sells now will regret later, the bottom won't be anything below $1.5k and it's highly unlikely for ETH to dip below $100 nor LTC under $30. I firmly believe that the market will double or triple its current value by the end of this year.

Agreed! I'm taking this opportunity to buy up some ETH, LTC and BTC. Buy lots now and sell some in 6 months for double what you paid now and hang on to the rest!

steem needs a user interface upgrade and it will be HUGE... it could and should topple facebook in theory..

I plan to buy back in if it drops below 1500 before August.

So, as someone who knows a tiny bit about market dynamics we could just be seeing someone who acrued a significant fortune in bitcoin selling it all at once.

When you're managing a hedge fund or a very large portfolio you have to sell in small segments or you could temporary depress the trading price or even cause a market crisis where other people think you know something they don't and decide to sell too.

It's probably nothing.

I'm not super familiar with bitcoin markets, but if you have anything like level 2 stock market access you should be able to check my theory by seeing if the trades are coming majorly from a single wallet or associated wallets.

Maybe Satoshi wants to buy a private island and needs to cash out some of his coins?

I'm looking forward to buying cheaper BTC. Get ready!

Will it go below 1k ? Any possibility ?

when I see blood on the streets. Only one thing comes to my mind. Buy!!Buy!!! Buy!!!! What I strongly believe in is that when it comes to the crypto space you never lose by holding. Am in this game for the long term guys

I feel its not just the August 1st(Forks) that is disrupting the cryptocurrency space, also the event in November between SegWit2 (Soft Fork) and Bitcoin Unlimited (Hard Fork) that will really tell us where Bitcoin is truly going, I am an optimist in the cryptocurrency space and I foresee a bull market returning and Bitcoin will keep rising.

buy bitcoin

Votre article est très bien écrit. Merci comme d'habitude.

For steem, I think we are close to the bottom, and I think you are right, the various crypto's will start to climb strongly again towards the end of August.

Obviously in the "it's going back to 1000$ scam" position. Buy, buy, buy!

I agree that the price is only going to go up in the future, just gotta hold out for a few weeks and the markets will return!!

I just bought more ETH at 180. I am not adding on to BTC yet- need to watch out for the aug 1 decisions

yes !! i'm agreed with your thoughts .........every one is waiting for august 1st.
i hope august 1st is good for every one.
upvoted......
i've posted my first blog..........plz check

Yes, great!!

Fundamentals are strong, I keep reading news stories about Bitcoin adoption and countries, companies, and people expanding their use - normally news like this would bump the price but now it's still dropping. I bought some more at $1993.

I'm not expert on bitcoin: I was concerned when I saw the price shoot up though in the past. Red flags that big banks were playing the market jumped out. Now that's not a bad thing unless there are not laws in place about dumping it. (I don't know if there are laws like that for bitcoin) if there isn't though i could see these bank doing a lot of damage to bitcoin confidence.

I agree. I'm trying not to watch the markets or prices until August 1st. In the meantime I'm pretty heavy in LTC, but that seems to be getting hit as well.

I think Bitcoin cal fall as far as ~1400 usd until 1 August. I dont wish that as all the market goes with it and I do have some coins which are keepers. So we have two more weeks I think of dropping and after that the market will go up again. So we have some choices: forgot your coins 1-2 months until they recover. Cash out in fiat and go back in ~1 August when the prices will be minimum. Or keep your coins and buy more ~1 August with best discount :) I would say last is best ;) I hope they will explode back up fast after!

"@jrcornel is using this recent dip to buy any Bitcoin's he can under $2000, any Ether he can under $180, and any Steem he can under $1."

Happy to see you come to this conclusion! I feel the same way. It makes sense for people to be nervous, especially when they can simply take profits and move on rather than risk it. But true believers should just see it as another chance to buy low.

I won't be investing more money due to my finances being too slim, but, I'm definitely doubling down on my Steem posts and trying to contribute as much as possible. While others worry and complain, the smart amongst us will just keep our heads down and keep at it.

Everyone should of known this was coming. The fork is freaking people out. Bitcoin will go lower before aug 1st. It will bounce back this after unless the fork takes the wrong turn.

Great time to go for USD Tether! Great post btw

august 1st is the date lads

Thank you for this post. Its helped explain a couple of things with regards August 1st for me. So it's appreciated as still new to the game.

Sometimes it feels manipulated you are right ...this is a huge maintained drop.. I think it is increased because people feel unsure on what is going on. They may split is what I read in some other post recently.. all I know is I took some out in case this continues..because up until now it has all been profit. :)

awesome post and articl

And yet, what should we keep saving now, until August 1? In bitcoin, in other tokens, or in fiat?

August 1st is still 2 weeks away. Would you sell if you had some today and buy again after the 1st? Or HODL and wait?

Good analysis, I fully agree with you. The next two weeks will be grinding stones and the we will see some good progress.

I'm gonna buy a lot of bitcoins if the price is decreasing.

looks the other way lol

BTC will rebound up a bit before going down again around $1800ish. This will be the best time to buy. It'll be a hell of a ride up after that.

I think bitcoin lagged the drop in the Alts as the majority of Alts that were dumped during the sell off were sold for bitcoin. People prob sold off Alts, paused in bitcoin positions to see what the market would do before selling out of bitcoin.

We were overdue a correction, it's not the first and certainly won't be the last. Interesting to where things go from here and how long it takes to recover!

I wonder about the people who are nervous about holding Bitcoin through the August 1 uncertainty. Where would you move within the crypto market if you just did not want to deal with the August 1 unknown. You would think you might see some other currency rising due to this.

Unless they are going to fiat?

Fiat would be the save bet... altcoins are tanking even harder than bitcoin

Bitcoin is the king of the Cryptomarket and all other coins rely on it staying stable. With it dropping so much recently anyone who believes in crypto must be concerned but is everyone going to flee? I highly doubt it. All I see in my opinion is a great time to buy all crypto's and Bitcoin is still the safest to keep your money.

my -2cents "rather have them in bitcoin"

Great buy alert!

Hi @jrcornel, great content and upvoted like always. I've a question to an experienced cryptotrader like you. I made a top 5 of my favorite cryptoinvestment. Would you agree with some of them? Here is my crypto top 5.

Thanks for this. I don't know much about cryptocurrencies generally. I had heard about Aug 1 as being a meaningful date, but was unaware of why. There is a Clif High video I need to go back and watch where he talks about the alligator teeth, which is what I saw on the graph you used.

Lot of panic selling i the past two days is the real cause, I wont be surprised if it goes below 1500 within a week

Why it can happen master @jrcornel i see this is very messy, is this because of too many sellers ,,?

It's called a correction.

This could get messy :/

Waiting for market stable so we can do shopping of different alts..@clickindiaa

it's bleeding.

Resteemed followed all and upvoted 🤙
Bought some extra ethereum yesterday and today

I couldn't agree more. We've seen this before just that wirh recent highs we all thought new stability might have been found. Still a market where anyone holding crypto of any sort can be considered an early adopter.

well... now its falling exactly because ppl reallized it trully was a crash

How i can have bitcoin

Currently this is a blood bath, as a long time Bitcoin holder I have diversified into other alts, though still keeping the majority in Bitcoin. I think Steem is a good buy at current prices but not so sure about Ether, I understand Solidity the programming language is very complicated and there aren't many expert programmers proficient in it, any mistake can lead to loss of funds (look up the DAO). That said Ether should really be a lot higher priced than it is. The real question is if all this down trend is due to Aug 1st and Bitcoin problems why is the whole Crypto market down? Crypto must be the future, there really isn't anything that compares to it.

Alts are priced in bitcoin.

I agree with u, it's time to buy, buy , buy because after August 1 , the price will rise like crazy. Thank you for sharing the graphs and stats :)

Its better that this is happening in the summer, when the price was going to drop anyway.

perfect point

I Love Bitcoin, I will upvote you.

Well written and researched. I am not selling and I completely agree that too many times people have been saying Bitcoin is a scam and it won't last. Too many people are now interested and invested in this currency and more people are learning about it every day.

I predict, just like @jrcornel does, that Bitcoin will continue to "mountain and valley" for a while before we see this currency flatten out and settle down.

I am thinking the same. Potential for a massive upswing after the date. Coins are potentially very cheap before then!

I'm so curious to see where this is going. Keeping the faith though!

God time to buy , actualy any coin posible . i will add some BTS in the buy list :)

I say buying will begin anew below $1,000.

Psychologically it will feel good for investors, but no one is buying back in until after August 1 2017, so if you haven't pulled out yet, you may want to consider it.

Bitcoin is the proof of concept Mothercoin it is used to buy everything else. As it finds its bottom so will the rest of crypto for now. I hope eventually people will see the Flippening light. But in the mean time I have a lovely low buy order for ETH that I hope will be filled over the next few days as Bitcoin decides to play knife, or fork. :)

https://steemit.com/cryptocurrency/@raphka/giving-perspective-on-cryptocurrency-prices-and-decentralisation-2017712t184927528z

Downtrend will continue even after august 1, because big guys have taken out their profits

Congratulations @jrcornel!
Your post was mentioned in my hit parade in the following category:

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