Technical explanation: Ben Marks, CEO and founder of Blocktrade Capital, explains that the USD 6,000 floor represents a decrease of 70 percent of the 20 thousand dollars it was worth several months ago.
Psychological explanation: the CEO argues that when the price of Bitcoin falls below USD 6,000 and within the range of USD 5,000 it causes operators and developers a feeling that drives them to act.
Production cost explanation: The resources that are used to maintain the network and verify a cryptoactive explain the minimum prices, says Forbes. That is what determines the "intrinsic value" of these digital assets.
We all should know this fact that bitcoin market is not stable, it is governed by many factors and if there is flactuation in any of the factor then there will be flactuation in the valuation of bitcoin also so if you want three reasons then most dominant reason is number of investors, higher the investors, higher will be valuation and vice versa and then comes the demand and supply factor which plays a major role in governing valuation and obviously then comes the amount of capital people are investing into bitcoin, higher the capital, higher the valuation.
