Bitcoin had a remarkably volatile week, losing $ 3 billion in market capitalization in just 90 minutes, from $ 11,400 to almost $ 9,000. Nevertheless, within 24 hours, cryptocurrency rebounded to more than $ 10,500.

Causes from top to bottom

The cause of the brutal downfall is not clear, although it seems that by assessing more than $ 2,000 in just one week investors benefit from the room for maneuver they have been granted. As the price reached dizzying heights, some found an opportunity to sell positions that they had bought at much lower prices.

The rise, however, as the currency pushed back over $ 10,000, had a clear cause. The publication of the Commodity Futures Trading Commission's (CFTC) futures decision, which announced Friday that CME Group and CBOE had met the requirements of the regulated market, has led to raucous calls for massive gains in cryptocurrency and pushed the price towards the highest. Nearly $ 11,000

While the bulls are back with important news, it remains to be seen if Bitcoin will be able to retain and consolidate gains greater than $ 10,000, then press for more . Some (notably billionaire Carl Icahn) recently called Bitcoin a bubble, decrying any possibility of additional earnings. Others, however, are not as safe.

Bounces Expected

For example, Alex Mashinsky, founder of the Celsius Foundation, argues that the outlet could have been a coordinated sale around $ 11,000, potentially to buy at most low. He says:

"There seems to have been a coordinated sale around 11,000. A lot of Telegram's chat rooms were talking about it as a level to sell. It bounced back because that there is too much money in big players like Coinbase, so there is a constant buying pressure that prevails on any sale.Many encryption funds also use these fluctuations to profit BTC at low prices from sellers who place limited sell orders as downside protection.There are now more than 300 crypto funds registered with the SEC.Four of them have a value of more than $ 500 million and are large enough to control prices at all times. "

However, other insiders are convinced that the price movement should continue northward. all current news being open. As greater levels of financing enter the market, more and more buyers will drive up prices. Alexandre Tabbakh, CEO of PUBLIQ said:

"General adoption, institutional flow with the creation of futures and derivatives of the GCE and other hedge funds, declaration and regulation of governments and regulators, acceptance of Bitcoin payments from major companies (PwC …), the flow of the OIC is constant and maintains an upward momentum. "

Tech related?

Beyond issues related to market frenzies, others see trade problems as a potential source of both downward and upward pressure. It's no secret that Coinbase has suffered technical problems, even by limiting transactions due to server overload. This kind of worry could clearly drive the markets into a short-term sales panic, only to be reversed when technical problems have been fixed. According to Amos Meiri, co-founder and CEO of Colu:

"The Bitcoin price is influenced by the Nasdaq quotation, the news and the major global exchanges eyeing the opportunity of future Bitcoin. Add to that that we usually see such a rebound when we have many people who want to buy, but who have not been able to deposit on the stock market, while others who wanted to sell have problems because of the banking system and challenges

Whatever the case may be, the news of the day is positive for Bitcoiners, as another massive drop was followed by a rebound. the experts are right, this price should remain stable and increase.