Bitcoin is trading just above $6k, being down by 70% from its ATH while constantly making records with BTC dominance at 54.5%. According to the Wall Street strategist, in the long term bitcoin can drop to $1,000 which is showing market patterns similar to Nasdaq dot-com bubble. A bounce can offer reprieve but the investors need to be wary of the afterward decline.
Bitcoin bulls keep on charging, BTC dominance continuously rising
The streets are running red, prices are heavily down, and there is no reprieve in sight. Since this month started, Bitcoin has been only plunging. Starting the month from just above $7,750, the prices dropped below $6k before making a slight upward trend. For now, it is managing to stay just above this line at $6,037 at the time of writing.
The world’s leading cryptocurrency is down by 70 percent from its All-Time High (ATH) while BTC Dominance is showing no signs of stopping at least any time soon. With the way altcoins are plunging right now, in the double digits, it will be going higher.
According to the Chief Options Strategist at Interactive brokers, Steve Sosnick, as Bitcoin broke the $8k and now precariously trading at $6k, it has been quite a volatile market. The rejection of Bitcoin ETF by SEC and the technical selling have been the primary reasons for the same.
Bitcoin bounce is a possibility, but it could only be a residual rally
Talking about the short time price movement, as per Sosnick, if Bitcoins fails to hold $6k level, it will fall further and might even take a hit below the $5k mark. He further showed the similarities between the current Bitcoin price fluctuations and the Nasdaq dot-com bubble in 2000. The host of the discussion also pointed out how Bitcoin price fluctuation makes the dot-com bubble look relatively small.
As for the long-term, Bitcoin can also fall to the $1,000 level and lower. He emphasized, while comparing with the dot-com bubble chart, that this kind of market patterns end in a nasty way.
He also pointed out how the highs are getting lower and lower creating a triangle. This descending triangle indicates towards a price slide. However, the momentum can turnaround and a bull rally can hit the market. This price bounce can give the market a reprieve from bears but this will hit the $6,900 threshold before making a downward slide and this time investors need to wary.
With a market cap of $104 billion, Bitcoin is managing the 24-hour trading volume of $5.3 billion. The current circulating supply of Bitcoin is just over 17 million out of the total 21 million. With the ongoing dip in full swing, this is the time for an investor to get oneself a share of Bitcoin as well.