Bitcoin price drop explained
- Post by: bag2q
- July 18, 2019
- Comments off
Dr. Mervyn Maistry shares his expert opinion on what might have caused Bitcoin’s price drop and what was happening in the markets July 17
“Crypto investors are beginning to realise that the Evil corp natureDr. Mervyn Maistry. CEO & Founder, Konfidio and Kintaro Capital
of Libra and Calibra are double edged swords.
This realisation is raising both awareness, through price euphoria,
and fear, leading to selling and discouraging new investors.”
Bitcoin, the cryptocurrency with a dominance of 68.39% suffered one of the largest daily price losses of 2019 on Tuesday, confirming a short-term bullish-to-bearish trend.
The technicals and the fundamentals are worth considering.
The bitcoin price risks falling to $9097 – the high on 31.05 – in the next 24 hours. The danger is that a close below that would expose the 100-day moving average line, currently located near $8K.
This drop and the resulting close below the July 2 low of $9,614, could lead to BTC technical analysts scurrying around in faux panic, which may affect retail investor sentiment which is nearly 60% of the market.
Fundamentally, this drop may be associated with calls for regulation of Facebook’s Libra project and cryptocurrencies in general. The real danger of the Calibra wallet was not even noticed by most Senators until now.
Bitcoin rose from $8,800 to $13,880 in the eight days following Facebook’s going public with the Libra’s white paper, and Crypto investors are beginning to realise that the Evil corp nature of Libra and Calibra are double edged swords. This realisation is raising both awareness, through price euphoria, and fear, leading to selling and discouraging new investors.
The shift in sentiment from both US lawmakers and the self-proclaimed stable genius Donald Trump will likely have a bearing on bitcoin’s price in the short to medium term.
Our Sentiment analysis does not indicate that the odds may now be stacked in favor of Bitcoin’s bears. The cryptocurrency could suffer a deeper drop in the short-run, but based on the fundamental of the store of value of Bitcoin, the Kintaro Capital team’s long term price targets remains $50K by 2022-2023, representing a market cap of $978-$994 billion for Bitcoin.