The ruckus in the digital currency market this week has made many investors paranoid - at least those who have invested heavily on the crypto - financially and mentally.
The price of the world's favorite virtual money crashed again this week from its recent level of about $10,000 per BTC to well below $8,000 - shedding approximately 15 percent of its market value in just a few hours.
Now, as BTC and other crypto technical boards flash the red indicator, and crypto bulls goad investors to purchase the digital asset "at every chance" they can get, the general trading arena looks as rattled as ever.
Based on the GTI Global Strength Indicator (GSI), a barometer that keeps track of upward/downward behaviors of recent BTC closing prices-shows the currency is not yet "oversold," potentially signifying more retreats, a Bloomberg initial report stated.
Interestingly, the CEO and founder of Morgan Creek Capital, an American crypto investment firm, urged investors to "buy the dip," stressing that daily shifts in the BTC price will not be of any importance, and must be ignored.
For technical analyst Josh Rager, the price of BTC could further drop to as low as $6,300 if the pullback worsens to a level where huge buy demand grows. As mentioned by finance expert DonAlt, bitcoin has been on a steady fall and has failed to recover from the $8,000 threshold.
The analyst pointed out last week that a fast recovery to the $10,000 border would pave the way for a trend reversal for BTC, flagging the retreat to $7,710 as some sort of bear trap. However, the premier digital asset has never been able to show signs of quick recovery, struggling to get back up on key resistance levels.
Analysts have recently predicted the price of bitcoin could reach $30,000 each, before its next breakthrough pullback. BTC has bounced back hard in the past weeks, as investors hailed bigwig entities like iPhone and Facebook who all showed their interest in the crypto and the promise it holds.
In other developments, analysts believe this week's massive selloff, which saw more than $30 billion lost from bitcoin's total market value, was likely not a result of a change in key fundamentals.
According to Miller Tabak Co. equity strategist Matt Maly, when bitcoin's $9,100 to $9,300 support range was breached, investors perhaps witnessed "sell-stops and the entire thing started to fall deeper."
