The Bitcoin’s price hit a 2018 record low yesterday at $4,200 USD. It has not been so low since 5th of October 2017. Today, it marked a small movement up over $4,400. At the time of writing, it is worth almost $4,500 according to the crypto watcher CoinMarketCap.
The most popular cryptocurrency’s plunge began on 14th of November hours before the infamous Bitcoin Cash hard fork. The hype around the two new coins, results of the split, brought many investors to the altcoins positions. Also, many expressed the opinion on social media that perhaps developers sell their Bitcoins and Ethereum to fund Bitcoin Cash mining.
However, in the days after November 14th, the Bitcoin was in an oversold situation. That richly supplied the crypto market which logically led to a price drop. But it seems that as of today, investors started to really buy the dips. The latter is a popular trading slang phrase ‘buy the dip, sell the rally’ meaning to buy on a low price and sell on a higher. If buying the dip really forms a trend, that would create a strong momentum for the Bitcoin and the price could possibly moon again. This is how experts explain the surge that usually occurs after a plummet.
In total, Bitcoin’s price fell by 34% in the period after last Wednesday. Today has a slow movement of 1.87% down but it holds the line of resistance at $4,200. Bitcoin still lies in a bearish territory, though. It would need a strong momentum to break out the $6,000 line again. But currently, the sentiment towards world’s first crypto coin is rather negative.