Bitcoin tops $5,000 and then promptly sells off 10%

in cryptocurrency •  7 years ago  (edited)

Bitcoin makes another all time high, and then falls sharply.

Bitcoin did what many analysts and prognosticators had been calling for, it finally touched that big round $5,000 number.

Then it did what many probably expected as well, it dropped fairly sharply as profit taking ensued. 

The current sell off is the biggest since early July.

However, it's not just Bitcoin as the entire cryptocurrency market cap is pulling back sharply as well. 

After topping $180 Billion last night, the cryptocurrency market cap is currently sitting near $160 Billion.

Just like Bitcoin, this sell off in the crypto space is also the biggest since July. When the cryptocurrency market cap dropped roughly 12% in a single day, from $72 Billion down to $62 Billion.

Just as Bitcoin dragged many alt coins higher, it also seems to pull them all lower when it decides to drop.

Which is evidenced by Steem and many other altcoins seeing red this morning.

Steem is currently trading down around $1.30 after spending most of the week in the $1.50-$1.60 range.

The big question on everyone's mind is whether this is a run of the mill correction or the start of a bear market in the space?

Bitcoin has died 27 times, and risen back to life each time. There isn't much reason to believe this time would be any different.

However, is this dip going to be a bear trap that anyone who sells or shorts right here is going to regret within the next couple of weeks or is it going to be the start of  a bear market in the space?

For me personally, with all the new institutional interest and media attention around Bitcoin and the entire crypto space, I would venture to guess that any dip will be bought right now.

People have been waiting for an entry point and they literally haven't had any, not a single dip since things turned up in mid July. 

This would be their first opportunity to buy a pull back, for that reason I think this will be short lived and higher highs are likely on the way again within the next several weeks. 

What do you think? 

Bear trap?

Start of bear market?

Top of the crypto markets for the foreseeable future?

Let me know in the comments below.

Stay informed my friends.

Sources:

https://news.bitcoin.com/bitcoin-hits-5000-usd-new-all-time-high/

https://www.coindesk.com/bitcoin-drops-5000-crypto-markets-see-13-billion-sell-off/

Image Sources:

http://kryptomoney.com/bitcoin-price-may-drop/

https://www.coindesk.com/bitcoin-drops-5000-crypto-markets-see-13-billion-sell-off/

https://coinmarketcap.com/

https://www.pinterest.com/pin/548242954609027359/

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Hey ,
Very interesting read, Thanks you for sharing it!

Did it top the 5grand? reasons for the fast decline afterwards?

  ·  7 years ago (edited)

Its how the market works, supply and demand, Buyers drive the price up, but when you run out of buyers theirs only one way to go, its like a re balance. Think of the market as a battle between to teams, buyers and sellers. their whole purpose to find the true value of an item. As more people enter the crypto world and buy buy buy, eventually the buyers run out of power and the sellers take over. With bitcoin being a large portion of the currency used to buy other coins, the rest of the market will be effected by the value of bitcoin. Its all to be expected if you understand whats going on. Its actually a good thing because it also creates a good entry point to buy back in. It will be a short lived re balance of things and the growth will continue. With crypto becoming more and more popular and growing at a rapid pace this happens alot and will continue to happen. Then everyone panics as always and panic sells everything and writes a horror story scaring everyone about how they cant afford dog food anymore and how bad crypto is. While the rest of us laugh as we buy our new corvette

This is me after the last price correction and taking profits ;)

4683651.jpg

  ·  7 years ago (edited)

I remember in Clif High interview he said there will be 1 more correction before going to the moon, so i am going to buy some more

Just a dip

This post received a 1% upvote from @randowhale thanks to @spacehd! For more information, click here!

hi jrcornel, before the correction when everything was green i regretted not owning some alt coins. So today i am buying at discount prices

Anything that goes straight up without any retracement is not healthy and probably a mania. Bitcoin is on fire, for sure, but I'm afraid many of the investors are expecting 100% gains every day and that to is not healthy either. I'd like to see BTC hover in the 4800's for a couple of weeks before it's next leg up. It needs to build a solid base, otherwise the swings will be lethal.

I think it's just a correction. I'm expecting a steep correction though. Bitcoin down to $3000-$3500 area. I'm still predicting $10000 in 2018 though

yes very normal correction, 3000-3500 would be a great bargain

Agree on both counts

Im not sure if it will drop as low as this. I'd say $3600 to $4000 range unless if there happens to be problems with segwit in the near future!

As a newbie to all of this it blows my mind that this is real. Thank you all for beleiving in this possibility!

That's a great news. I think bitcoin will go high in future. I am never concerned with short term volatility. My philosophy is always hold for the long term. I hold my bitcoin tight.

  ·  7 years ago (edited)

Same here. I would actually love for it to really tank so I could get some more at a better price. :)

Agree on the hopes for tanking!! Besides what I said below, remember just 5-6 weeks ago (amidst Aug 1 hf uncertainty) btc hit $1800 for a second. I'm sure most of us regret not buying big then. We may get another chance at low buy in in November https://www.forbes.com/sites/laurashin/2017/07/25/why-november-will-be-the-real-test-for-bitcoin

I do remember that, Goldman actually nailed that move perfectly. I picked up some sub $2000 BTC myself. ;)

Brilliant! I was actually waiting for it to go lower :P

I hope it is just a healthy pullback and if that is so, it is welcomed by me as I am averaging in over time!

My thoughts exactly.

For me personally, with all the new institutional interest and media attention around Bitcoin and the entire crypto space, I would venture to guess that any dip will be bought right now.

Exactly my thoughts. Just relax.

I am riding the wave I know it is gonna pull back up, I feel it, and I invest on feelings after watching charts I know that isn't the smartest way to invest but it has worked for me. Currently I have only profits invested and am very happy with the profits even with it dipping. But when you just have your profit invested you don't panic as you do when your have your investment money in.

I added my weekly BTC buy just before it tanked last night. It sucks, but in all reality it's not much of a loss. Just wish I'd bought in today instead of yesterday.

Great post! A few traders may have pulled out but I think in a couple of days the dip will have been bought out and up we will continue. Bitcoin and crypto isn't going to slow down until the market cap is in the trillions :D

Bitcoin is one of the greatest cryptographic achievements as said by Eric Schmidt and it's my belief that it will be the main currency for the cashless Society in the very near future 😉

I'm guessing it's a foreseeable dip, but not quite the bear yet. As you said, many short-term profit traders were holding to sell if/whenever btc hit $5,000 bcz that was their target. But I also think - like you said - the media interest is super high right now. The headlines of hitting $5000 is going to continue to bring new money to the field - just as $4000 and $3000 did.

I am very happy for a big pullback, because I have been waiting to enter. I am not worried about bitcoin, in my opinion it has plenty of attention which are huge. We need plenty of more volume.

  ·  7 years ago (edited)

Today correction it opportunity to take long on bitmex again! I think BTC going to 5000$ back, may be tomorrow? No bad news, no real reason for dump.
https://www.bitmex.com/register/HJfZyC

I think it will keep on going up, not only in the near term, but for a very long time into the future. I fail to see an argument as to why it would lose it's prominence, especially with the institutional money entering the space, other than exchange commissions being way too high.

I'm very new to this space. My thought process though is that, the more crypto currency gets popular, the more availability of (possibly more mining) bit coins out there over the next years. So at some point, this may slow down rapid ups and downs, but stay below $5k. May be others like Ethereum will take more bull runs!

right

At the end of September will be $ 5,000, in October 5500 -6000$, and so will be repeated every 3 months

It is true the demand is increasing everyday

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That's awesome! Bitcoin is the key to our society welfare, it might take over the entire market in no distance time from now. If you have not started yet you must be missing something great

Useful information !!
I look forward to more posts from you ..

The price is falling only because people are rapidly selling, in 1 months time the market will stabilise and the prices will even out and start increasing again, we just need to have faith!

It's bound to bounce back. Besides, a dip is just another opportunity for a lower sale price.

The .com bubble was in the trillions before it burst. Crypto is at around 164 billion right now. We've got a ways to go.

I've been waiting patiently for a bear market or substantial pull back to load up on Steem and Bitcoin. I think this may be the start of that. It is needed anyways.

Indeed!

Crypto currencies are making loads of average people rich

That was crazy! We were up watching it at 2:am. Defiantly needs to even out for a bit. I was looking to see if anything had happened in the news to cause it. SSDD was all that I could report.

What goes up must come down.

I'm in the agreement that it needs another solid foundation for this next rise.

Investors must read the movement of the rate. Tjey have to take care to the issue well. A bitcoin can be $100.000 per.coin, or it can run below $3000.

Hi @jrcornel, thanks for the overview. Iam quite sure that we are just seeing a short dip. A lot of ppl have waited for an entry point on a reasonable price. I definitely think that they will think about getting into the market now

It was clear that a cashing in was about to happen, the psychological important mark of 5000 was a quite obvious point for that to happen.

in the end I think that btc is coming back quite soon to take the 5000 for good. I can see no general bearish signal out there.
Thanks for the post @jrcornel

Doesnt really matter. Bitcoin is entering more peoples minds. It wont go away. Someone asked me the other day when are you going to sell your bitcoin and take a profit? I said never. Why would i do that? Bitcoin is not a stock. Its what a currency should be. So ill stick to that. You stick to your buttcoin aka fiat. Lets see who laughs sarcasticly in 20 years.

  ·  7 years ago (edited)

wow...its a record...
Great..thanks for sharing

Upon checking the market periodically. EVERYTHING in is the red. They are all following suit of Bitcoin. It was taking off with no end in site, but everyone knew there was a time where is needed to relax a little.

I remember in mid July it was at $2700 and it gained.
I am making a prediction it will reach around $6500 by end of this month!
We have received much media attention of late and so many people will get in.

This would be their first opportunity to buy a pull back, for that reason I think this will be short lived and higher highs are likely on the way again within the next several weeks.

I'm probably going to buy when it turns.

What about ethereum????

Great post. Bitcoin should soon be on the moon. Upvoted abd following u. Do review by below post when u find some time. https://steemit.com/life/@nainaztengra/do-we-always-judge-people-by-their-appearance

this coin promises profit, but we can not forget that all virtual space is currently managed by humans, and in any case there may be a fault caused by a human hand I liked your post

Nice observations ! The pattern (high followed by a down spike and then normalizing) will always be seen on some 5k , 6k and so on milestones ..but eventually upwards! Upvoted

Upvote here

Damn I noticed that when i went to check the prices of bitcoin on the cryptocurrency market page. Alot of cryptos have gone down. The whole page is in the red.

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Good to hold,never sell for loss

We share that thought

Great post,

thank you for sharing with us.. very interesting things happening in the space within the last week. lets keep on it @jrcornel

It may come to $3600 then turn to go up.

Another great article - You have a great way of breaking down all the information and provide lots of content! I wrote an an article about the US regulators cracking down an crypto and why thy see it as the biggest threat to the US financial system - maybe you can check it out and let me know what you think 0 I'm trying to provide good quality content too - any feedback you have would be greatly appreciated.

https://steemit.com/crytocurrency/@jorlauski/bitcoin-biggest-threat-to-us-financial-system

I never thought bitcoin was going to reach this insane highs....because of its limitations in transactions per second, then they forked and kept rising. I think we are in the very early stage of blockchain technology and the more we see its worth....the more important bitcoin will become. In my opinion the predections i have ppl called retarded for. Like btc ever beeing worth 50k usd each. Is getting less retarded every day in my eyes.

It's bouncing back from around 4k to go for breaking a magic barrier of 5k and going up more. At least i hope so :P

great and upvoted

by the way ,, i made an order to buy some bitcoin (0.5) when in drop to 4200
YOURS,, is it ok?
i mean is it good decision to buy some bitcoin now? or another altconins is better??