The bears are not yet done selling their BTC. In the latest market slide, Bitcoin has finally fallen below its psychological support level of $5,000. At the time of writing, the rate of BTC/USD pair is $4,699 according to Coinmarketcap. This represents a 14.97% fall in the past 24 hours.
Back in July, Arthur Hayes, the CEO of Hong Kong-based margin trading platform BitMEX and former Citibank and Deutsche Bank trader made a bold prediction against other market researchers and analysts. At the time, Bitcoin had fallen in price to as low as $5,800 and most experts were calling this level Bitcoin’s bottom.
However, Hayes disagreed saying “I think we haven’t seen the worst yet.” He went on to predict that Bitcoin was going to test the $5,000 level and possibly fall some more before truly bottoming out. Well, Bitcoin’s Monday fall just confirmed his statement.
Bitcoin’s price has been on a protracted fall for the past week seeing loses of close to 25%. The general cryptocurrency market has been shaved from last week’s highs of $212 billion down to $155 billion (at the time of writing). The market cap has lost 26% in less than a week with more downfall expected.
BitMEX, recently predicted through its latest periodical Crypto Trader Digest that Bitcoin has more downfall in the short-to-medium term. Hayes expectedly agreed with this report even though it was going against his prior prediction of Bitcoin ending the year at least priced at $50,000. Interestingly, Bloomberg researchers also released their latest market analysis this past week and according to their data, Bitcoin is poised to fall close to $1,500 before bottoming out.
As reported over the past week by Crypto-economy.net, the industry sentiment is negative for both the short and medium term periods. Industry experts that have been previously bullish are now revising their prior predictions.
This week we saw Wall Street’s Tom Lee cut his previous end of year prediction of bitcoin price by over 40%. Other public cryptocurrency influencers have either revised their predictions or are still naively bullish.