Bitcoin Price $5,000 Support is Now Critical as Bull-Run Fizzles
Bitcoin price fell off its peak close to $5500 to head towards older $5000 support April 11 after a late fresh surge abruptly ran out of steam.
$5500 A Push Too Far
Data from cryptocurrency exchange Bitstamp, which provides Bitcoin price data often slightly more conservative than other platforms, shows BTC/USD 00 has dropped below $5200 at press time Thursday.
Bitcoin, which experienced a sudden rally of around $1300 last week, has broadly held on to its new gains.
Despite news China was intending to outlaw mining, this week saw the trend continue, with Bitcoin price hitting a local high of $5440 on Bitstamp before turning back to shed several hundred dollars in minutes.
The $5000 mark now lies around $150 away, Bitcoin having last traded below that level on April 7.
How Low Can It Go?
Correspondingly, online commentators were showing signs of misgivings about short-term price potential.
“On a daily scale, the dynamic is turning into a sideways trend, the bullish momentum might be… out of steam,” one analyst wrote in a dissection of Bitcoin’s latest performance on social media.
As Bitcoinist reported, data from well-known data guru Willy Woo released this week nonetheless pointed to a $5000 Bitcoin price signalling a bounce off the latest bear market bottom – something which appears to form part of a trend extending back to the cryptocurrency’s inception.
His experimental metric, dubbed Cumulative Value-days Destroyed (CVDD), focused on trading habits to provide an historical trend corridor for Bitcoin price.
“CVDD has hit the historical Bitcoin price bottoms with remarkable accuracy,” he summarized.
Altcoins Feel Bitcoin Insecurity
Elsewhere in crypto markets meanwhile, altcoin investors felt the pain of Bitcoin’s sideways trading, its roughly 1 percent drop spelling significant volatility for other coins.
A look at the top twenty cryptocurrencies by market cap from CoinMarketCap revealed unpalatable performance Thursday, with largest altcoin Ether down 6 percent in 24 hours.
Others fared worse, with TRON down 9.1 percent, NEO 8 percent, and Litecoin and Bitcoin Cash both dropping around 7 percent.
The figures cap a trend which continues to revolve around many altcoins mimicking Bitcoin’s performance, then delivering an exaggerated move of their own.
Bucking that behavior Thursday was Tezos, which managed to sustain 1 percent gains over the past 24 hours.
The asset had been buoyed by a decision from cryptocurrency exchange Binance to add it to its official wallet as it prepares to add a staking feature for Proof-of-Stake cryptocurrencies. Late last month, US exchange Coinbase also released Tezos staking via its Coinbase Custody spin-off.
What do you think about Bitcoin price? Let us know in the comments below!
Images via Shutterstock, Tradingview.com