Bitcoin Remains Under Pressure
Early on Thursday, Bitcoin price slid under $52,000 for the first time since Mar 8, as crypto market participants appear unable to sustain the bullish momentum amid a weak market environment. In addition, there have been growing talks among analysts that bitcoin could have entered the late stages of a bull market and a correction is underway. In reality, bitcoin is already into a correction. The general definition states that every asset which depreciates by 10% enters correction territory. A 20% move down would define a bearish market. So far, bitcoin is 18% down from its all-time high reached less than two weeks ago, on Mar 14.
Compared with the wild swings common for the crypto space, BTC has been piling modest losses over the last five days. In a five-day losing streak, the world’s largest cryptocurrency has lost a little over 10% of its value.
A Polarized Point of View
The recent pullback has created a polarizing discussion in the Bitcoin community. Crypto proponents say the drawdown is a needed element of the euphoric rally for it will cool down the market before the bulls take off again and reach even higher levels. In addition, BTC believers cite increasing institutional demand provides support, protection, and growth potential, unlike the 2017 retail-fueled rally that fizzled out rather quickly. On the other side, cryptocurrency opponents argue that the recent stratospheric rise is a result of sheer price speculation that will see its end in another boom-and-bust cycle.
Bitcoin is currently trading off its session lows. The price is now hovering around $53,000, roughly 3% higher than the intraday bottom of $51,400. For the last seven trailing days, bitcoin has been in a downtrend, sliding by nearly 10%. However, on a monthly basis, BTC is still positive by 15% March-to-date.