BTC/USD – Bitcoin Price Daily Analysis – is Bitcoin still safe?

BTC/USD – Bitcoin Price Daily Analysis – is Bitcoin still safe?

The past week has been pretty rocky for most cryptocurrency traders. After the flash crash of Ethereum, I think people started to lose their trust in the industry and sold off assets on the very same day. Unfortunately or fortunately for them, people were willing to buy at such a low price because investors understood that the currency would recover. These people got pretty lucky with their bet in the market. Nonetheless, due to Ethereum, the whole cryptocurrency industry seems to have taken a hit, including Bitcoin.

Here’s a table showing the evolution of a few top cryptocurrencies.

Picture1 BTC/USD - Bitcoin Price Daily Analysis – is Bitcoin still safe?

Evolution of Top Cryptocurrencies

 

As you might have noticed, the whole market seems to have had an effect due to the Ethereum crash. Now, this might be due to the decrease in perceived value that investors attribute to the crypto market. Or, it could be because of the decrease in trust that new-comer investors had which resulted in lower investments for the rest of the day. Traders on GDAX were quite shaken by the Ethereum crash, the platform was shut down for a few hours, after which they began trading again.

Since then, the currency has been recovering as well as most of the alt-coins.

During this period, Bitcoin also experienced a price fall since people were expecting to see Ethereum as a bubble which just burst. This significantly reduced the people buying into bitcoin for the day and increased the number of sellers of bitcoin. This is because people started to get paranoid and unload their bitcoins.

Here’s the chart of overall prices of Bitcoin.

 

Picture2 BTC/USD - Bitcoin Price Daily Analysis – is Bitcoin still safe?

Evolution of Bitcoin

So, is Bitcoin still safe?

Yep, of course, Bitcoin has been recovering for the past day. It’s up 5% and is expected to continue growing in the next days. Therefore, if you’re thinking of shorting bitcoins in the next few days, now’s the time to buy on a BTC Exchange. In a few days when the prices recover fully and that bitcoin reaches around $2900 again, you could unload for a pretty good profit. Nonetheless, Bitcoin hasn’t been affected much, maybe it delayed the growth for a few days but it will definitely trade in the future.

Why does this happen?

Unfortunately, you can’t tell each and every investor that even though prices are going down, they will increase soon. Since the Ethereum crash actually began from a rumor on 4chan, you never know what can affect people’s perception of value. If people start to panic and short their coins, other people would follow and do the same, trusting the very people who started to panic for nothing. Finally, now that the story has been resolved, the market is looking good. It’s now ready to make the $13 Billion that it shed in the past week.

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About Article Author

Michael Serrano
Michael Serrano

Michael is an engineer and a bitcoin evangelist. He has been involved in cryptocurrencies since 2013. His biggest wish? 1 billion users of bitcoin, ether and litecoin by 2020. In the last 10 years he has worked for various early-stage start-up as a back-end developer.

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