Bitcoin Dropped Under $8,500 After Its Short-lived Rally

Bitcoin began 2020 with a big rally. It traded at $9,186, giving the investors hope that the price would reach $9,200. However, after a short period, the cryptocurrency began the long downfall, at last dropping as low as $8,200.

During the last days, BTC skyrocketed all of a sudden, and for a while, it seemed that the crypto would hit the record. However, so far the growth turned out short-lived. According to CoinDesk data, Bitcoin fell to $8,290.24 on Thursday. The cryptocurrency declined by about 3.6% from $8,597.33 in less than six hours.

Tim Enneking, the Managing Director of Digital Capital Management, thinks that in the long-term, crypto will manage to grow again even though it may suffer more losses in the meantime. The past six-month downfall has changed to the upside. The progression on lower lows at the bottom of the corridor have also switched to higher lows for the past month or so – says Enneking.

Joe DiPasquale, the CEO of cryptocurrency Hedge Fund Manager BitBull Capital noted, that the current decline could be caused by rejection in the resistance zone between $8,750 and $9,100, following which profit-taking made sense for investors and traders. He also stated that the fall under $8,500 puts additional pressure on Bitcoin’s price.

Despite Bitcoin’s dropping price, there is still strong support between $8,000 and $8,200. Analysts expect that the price to take a breather and decline, at $8,200.

Cryptocurrency May Gain from the Digital Currency Industry’s Development

The market infrastructure is improving significantly, while the regulations are becoming more exact and agile. Experts are searching for ways to make the digital and fiat currencies’ exchanges easier.

Global regulators are also trying to harmonize rules and standards for exchanges. Charles Hayter, co-founder, and CEO of Digital Currency Data platform CryptoCompare noted that the operational infrastructure of the industry matures positively for digital assets.