The leading crypto asset by market cap, Bitcoin, is once again trading in the low $7,000 range after taking a short trip below the level to as low as $6,500 before rebounding to the current price of $7175.
With Bitcoin now retesting former lows as support, the chance of the first-ever cryptocurrency setting a new bear market low is a reality that crypto investors may need to face, however, the market is torn as to whether that outcome is a realistic one or not.
Crypto Investors Split On Bitcoin Bottom Being In
Financial markets, like the cryptocurrency space, are driven by a number of dynamics including fundamentals, technicals, and even the emotional state of the investors making up the market.
In the crypto market, hype and speculation are the primary drivers of price and perceived value. This gives Bitcoin and other cryptocurrencies their notorious price volatility as sentiment swings back and forth in either direction.
The market has long been convinced that Bitcoin had bottomed back in December 2018, resulting in a powerful breakout in April 2019 that took the price of Bitcoin up over 350% to as high as $14,000 from the $3,100 low.
But now that Bitcoin is once again trading as low as $6,500 – prices not seen since the 2018 price floor that eventually gave way, taking Bitcoin to its bottom at $3,100 – crypto investors are now once again wondering if the bottom is actually in, and if lows under $3,000 are a realistic expectation or not.
According to a Twitter poll shared by ColdBloodedShiller, the market is torn as to whether or not such an expectation is realistic or unrealistic. In fact, the poll results are almost split completely down the middle, suggesting that the market is currently in a state of confusion and could go either way.
Is $BTC trading below $3,000:
— Cold Blooded Shiller (@ColdBloodShill) November 25, 2019
The largest portion of the vote went to Bitcoin price trading below $3,000 being an unrealistic expectation. This would suggest that most traders believe the bottom is in and will hold as such, regardless of the severity of Bitcoin’s current downtrend.
The crypto asset has fallen from $10,500 to as low as $6,500 in a little over one month, and before that, back in June Bitcoin was trading at as high as $14,000.
A rejection at that level sent the price of the leading crypto asset plummeting back down, where it consolidated and ultimately dropped further to current prices, wiping out much of the 2019 parabolic rally as a result.
Bitcoin’s bottom at $3,100 will need to hold, or the longevity of the cryptocurrency as a financial asset may be in jeopardy.