ForexMinute.com – Ever since the cryptocurrency market has entered 2015, the prevailing downtrend seems to have accelerated to a maximum. Last two weeks presents such a drastic, gravity-loving scenario in the Bitcoin market.
Without dwelling too much into technical analysis today, our aim now is to understand the psyche of traders’ at this point. The $100 fall within last two weeks has brought out a number of speculations – stronger US dollar, the recent BitStamp theft, high difficulty level, being some among them. It is also possible that each of the aforementioned factor has contributed in some way to bring Bitcoin down at the verge of collapse. Thus, the question, which irritates us and every Bitcoin-loving individual, is: Are traders, afraid of fundamentals, selling their equities to get out of the market?
Probably yes, as we see no reason why a huge section of traders plan to dump their investments in such a way that brings Bitcoin $30 down within only 30-minutes. This is no Mt. Gox situation indeed, but still a fear seems to be circulating inside the trading environment – impacting miners and traders at the same time.
What adds more trouble to the current downtrend is the absence of a specific bottom. There are indeed psychologically-induced speculations for now, saying the bottom lies either around 176, 156 or 125. But can they be believed if traders themselves want out? We somehow agree with CoinDesk for calling the current trend a “vicious cycle” where mining companies can’t mine further due to nil profits, which will reduce the difficulty rate. Even if they do mine, they would be pressured to either hold the coins or sell them in the market at a lower rate, thus increasing supply and once again bringing the price down.
The focus now lies on traders who want to enter (or reenter) the Bitcoin market, despite the pessimistic fundamentals. This is indeed a mouthwatering price to generate a buying opportunity. We now need investors who are prepared to face a bumpy ride. The community needs a consensus.
Disclaimer: This is an opinion piece and is subjected to both criticism and agreements. Please keep your instincts on priority when trading Bitcoin.