[2017-12-23] After Losing 40% Of Value, Bitcoin Bounces Above $14,000

[Terraformer]

After hitting levels above $20,000 per coin just last week, Bitcoin saw a massive sell-off as fears of a bubble began to loom large.

The price reached an all time high of $20,078 on December 17, but saw an approximate 40% drop in just three days, once dipping to as low as $11,833 on December 22.

However, in spite of fears, the market has rebounded again, and is now stabilizing above $14,000. At press time, Bitcoin was trading at an average of $15,147, according to Coinmarketcap.

The recovery so far seems to have justified the approach of HODLers (‘Hold On for Dear Life’) who refuse to sell in times of market fear.

Varying responses

Nevertheless, the drop-off saw hedge-fund manager Mike Novogratz delay the issuing of his hedge-fund, citing the substantial swings in the market as well as potential conflicts of interest as the cause.

On the contrary, however, Kain Warwick, Founder and CEO of Havven, an asset-backed cryptocurrency, made it clear that the rebound should have been expected, telling Cointelegraph:

“Bitcoin rebounded because there is significant support at psychological levels like 10k, so once the price stopped falling people came in to buy the dip.”

https://cointelegraph.com/news/after-losing-40-of-value-bitcoin-bounces-above-14000

[Marry Finch]

Such a sharp increase in the price of bitcoins, as it was the day before, when it grew to $ 20,000, has a very negative effect on the image of bitcoins and crypto currency in general. Thus, the property bitcoin as a financial bubble is clearly manifested. Apparently this circumstance, and even the effect of the high volatility of bitcoins, led to the fact that on December 18, the crypto currency was banned in Kuwait. States are compelled to somehow defend themselves against such instability and threat to their economy.

[richardsNY]

Apparently this circumstance, and even the effect of the high volatility of bitcoins, led to the fact that on December 18, the crypto currency was banned in Kuwait. States are compelled to somehow defend themselves against such instability and threat to their economy.

Governments don't care about the volatility at all. If they end up banning Bitcoin, it is solely done to not allow their own people to enjoy financial freedom, and at the same time not bypass their government. All these volatility and criminal activity excuses are nonsense, but you seem to take it for granted apparently. Kuwait means nothing to this market at all, and for that reason people won't even care about them banning Bitcoin. Growth nowadays comes from more civilized countries, and doesn't just depend on one single country to thrive. Also, if people there want, they won't have any problems buying Bitcoin, so not much is lost here.

[error08]

After recovered to $14,000 bitcoin drop back to $12,000 again. it's a cycle that happens repeatedly.
Since bitcoin facing the high fees problem, people tend to trade bitcoin in short-term which cause the price always fluctuate significantly.
After the scale problem resolved, the price movement may get back to normal and start to increase over $20,000.

[jhenfelipe]

From $20k+ to $11k+, since the price increased all of a sudden, it decreased as sudden as it too. As of this moment, the price keeps decreasing, so volatile.

“Bitcoin rebounded because there is significant support at psychological levels like 10k, so once the price stopped falling people came in to buy the dip.”

I agree with this. Most (if not all) Bitcoin holders (or hodlers) have this borderline when the price is falling, and when reached, they consider it as an opportunity to buy more.

[secondgarlic]

And it has fallen below that level once again. I'm not panicking at all (because this level is still way higher than what we would have expected at the end of November) but this fluctuation is not the behavior I had expected. I was expecting the price to go up strongly once again, after bouncing back from the lowest resistance point.

[1Referee]

And it has fallen below that level once again. I'm not panicking at all (because this level is still way higher than what we would have expected at the end of November) but this fluctuation is not the behavior I had expected. I was expecting the price to go up strongly once again, after bouncing back from the lowest resistance point.

I am quite sure that what we experience right now, is coming from the market being exhausted, and that we are near the January tax deadline. In other words, a lower price means that investors end up paying less tax over their holdings. If this turns out to be the case for real, we should see the market shoot back up in January after the capital snapshot has been taken. I however strongly believe that if we fall back down even further, that it with a high probability will not tank under the $10,000 level.