- eToro’s senior analyst cautions investors from overreacting as BTC is trading between a core support zone of $3,000 and $3,500.
- Bitcoin latest price action is technical and still strongly supported.
The market leader, Bitcoin was caught up yet another bear wave in the morning session today. Bitcoin slumped massively within a short period losing at least 4.8% of its value. The declines hit new lows this year around $3,376 and the lowest level since the lows traded on December 17, 2018.
The new 2019 lows are not far above the 2018 lows of $3,136. Other assets like Ripple’s XRP and Ethereum followed suit. XRP plunged below its key support at $0.31 and traded close to $0.2877 while Ethereum lost its cool dropping below $120 to test the support at $110. The Markets Insider reported that eToro senior market analysts said that “The cryptoasset movement today is nothing more than technical,” and that:
“There’s no need for overreaction here. Bitcoin is continuing to trade within the core area of support between $3,000 and $3,500, within the broader range of $3,000 – $5,000, where it’s been since November 2018.”
The largest crypto by market capitalization experienced a parabolic move in 2017 where it increased in value from roughly $1,000 at the beginning of the year to almost hitting levels close to $20,000 at the end of the same year. However, there was an elongated correction in 2018 where Bitcoin plunged to the lows mentioned above around $3,136.
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