Bitcoin, the oldest and largest cryptocurrency by market cap, bounced back from its lows recorded on Sunday, June 24. On Friday, the price reacted to news from Japan, where the Financial Services Agency sent business improvement orders to six cryptocurrency exchanges, including bitFlyer – the largest exchange service in the country. The downtrend continued in the weekend and on Sunday, BTC fell to the lowest level in 2018, touching $5,845, according to Coinmarketcap data. On Bitfinex, the Bitcoin price fell below $5,770. The last time Bitcoin traded that low was on November 13, 2018, when the largest cryptocurrency was demonstrating a long-term rally.
The cryptocurrency market mirrored Bitcoin’s movement, declining on Sunday to $235.3 billion, the lowest level since November 21, 2017.
After touching the lowest level year-to-date, Bitcoin added 6% within less than an hour.
Mark Newton, technical analyst and founder of Newton Advisors, told CNBC on Friday that Bitcoin could move in a downtrend for the next two or three months, dropping to a bottom at about $5,000. According to Forbes, the next support level for BTC is also close to $5,100. The last time when Bitcoin traded that low was in mid-October of last year.
However, despite the sharp decline, many crypto watchers say Bitcoin is not dead yet. Brian Kelly, founder and CEO of crypto-oriented investment firm BKCM LLC told CNBC:
“This is not the funeral for bitcoin whatsoever. Let's put this in perspective – Do you know where we were a year ago? $2,500.”
Crypto star John McAfee, who was unconscious for two days after an apparent failed attempt to be poisoned by his “enemies,” reacted on his Twitter account:
https://twitter.com/officialmcafee/status/1010494454116048896
However, not everyone agreed with McAfee’s optimism. One commentator said:
“What about your algorithm that "has never been wrong"? You called BTC 15k in June and you were dead wrong. So much for that.”
Another Twitter user wrote:
https://twitter.com/AntypasMakis/status/1010566657381752833
This article appeared first on Cryptovest
