Bitcoin is currently trading around $ 6700. If you look into the technical price charts of Bitcoin, you will realize that there is an important support at $ 6500. This is one of the main reasons why many investors are closely watching this level. Moreover, when it comes to Bitcoin the momentum seems to be on the downside. As the momentum is on the downside, it will be very difficult for it to hold the support. If indeed, this support breaks, it can easily fall back to 5500. This is the low of the present downturn.
CEO of Doubleline Capital, Jeff Gundlach recently stated that Bitcoin is one of the riskiest assets which are around. From the peaks, Bitcoin has fallen by approximately 60% in the last few months. This is the reason why many investors are not willing to invest in Bitcoin even at these levels. When there was plenty of hype around Bitcoin, it was trading around $ 20,000. Since then, it has fallen consistently and significantly.
Many of the countries are actually trying to build the rules and regulations around the cryptocurrency space. This is leading to a loss of momentum in the cryptocurrency space. As a result of this loss of momentum, many investors are selling the cryptocurrencies. This is driving the price downwards. The problem is that most of the cryptocurrency investors are not sure whether it will be legal to invest and hold the cryptocurrency once such rules and regulations come into place.
Owing to this very fear, most of the cryptocurrency investors are actually liquidating their positions which is not helping the price. In addition to that, the significant fall from the high is making investors jittery. This is another reason why most of the investors are consistently selling it. This is not just pertaining to Bitcoin but the other cryptocurrencies are falling consistently as well. This is one of the biggest problems which the cryptocurrencies are facing currently.
Moreover, with more and more central banks all over the world becoming skeptical of cryptocurrency as well as Bitcoin, the time for Bitcoin is not the best. As a result, many investors who were looking for a dip earlier to invest in Bitcoin are staying away once again. It remains to be seen whether it is able to hold onto current levels or whether it falls more.