Once again in two weeks, the Bitcoin price fell below $8,000 during a low volume weekend as traders foresee a steeper drop to lower support levels. In fact, when the Bitcoin price was initially hovering at around $8,500 following a strong recovery, technical analysts anticipated a rebound to the $9,000 area.
But, subsequent to a noticeable dip in volume, the Bitcoin price failed to demonstrate a short term trend reversal to the upside. At the time of writing, Bitcoin price is down by 1.76 per cent at $7,941.
During the week, the Bitcoin price has been getting strong support at $8,000. Since the drop from $10,300, Bitcoin has been hovering around the $8,000 to $8,400 range with support at $8,000 and $7,850. The digital asset formed a double bottom at $7,715 then crawled above the 20-MA of the Bollinger Band indicator.
During this time last week, the situation was looking increasingly dire for Bitcoin and murmurs of a drop to $6,000 and even $3,000 began to circulate amongst traders. For the moment, Bitcoin appears to have stabilized and traders are hopeful that a strong move to $8,500 will occur over the coming days.
However, experts are not at all perturbed. They are of the view that long term investors should use any drop in the Bitcoin price as an opportunity to accumulate the king coin.
But even after the fall below $8,000, the Bitcoin price has more than doubled in the calendar year 2019. The price for the biggest cryptocurrency finished the third quarter up 114 percent, around $8,308, according to data provider Messari. Investors who bought on the last day of 2018 would have more than doubled their money. During the same period, Bitcoin has far outpaced all other asset classes, including gold.
So far this year, U.S. tech stocks have experienced a somewhat healthy return of 31 percent, which Goldman Sachs deems the best-performing asset class year-to-date. Gold has given a 17 percent return during the same period since December 31, 2018. As far as stocks are concerned, the Standard & Poor’s 500 Index returned 21 percent through September 30, and the 10-year U.S. Treasury bond is yielding just 1.6 percent, close to historic lows.