TL;DR this needed to happen, but it still hurts if you bought above $10k

Once again bitcoin has fallen sharply, at one point touching $6,550 (Bitstamp). Over $1,000 was wiped off the price of every BTC yesterday, with a measure of stability returning overnight. At this moment, bitcoin is sitting just below $7,000. Are the falls over? There are reasons to think not — but also, that the end of the downtrend is finally approaching.

It’s an odd time, with a number of factors aligning to push down the price of bitcoin. It’s the end of the quarter, and many traders may be selling to pay tax bills. It’s also the Easter long weekend, which means four days without any fresh fiat coming into exchanges. Meanwhile, BTC payments can continue, so there’s a mismatch of buying and selling power. Under such circumstances, exchanges often experience volatility and manipulation.

Then there’s simply the fact that the market was overbought and this correction needed to happen. If you look at our previous analysis comparing this bubble’s aftermath with the last, you’ll see this is expected: https://medium.com/@CryptoInferno/inferno-market-outlook-the-double-bubble-analysis-39e801fe91e7 We’ll be posting an updated version of this next week, but suffice to say for now that we’re right on track.

The good news is that it looks like we’re almost there. Assuming things continue along the same trajectory, another month ought to see the end of the downtrend. In the short-term, we may well see a bounce as the temporarily oversold market meets fresh fiat after the Easter weekend and the new financial quarter, but be careful, because further falls could be on the cards. We’re watching that $6,000 mark keenly.

The coming two months will likely be the time when the next fortunes are made when the market bottoms out and the trend changes. Good luck!

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