Well, that de-escalated quickly. Just nine days after breaching the five-figure mark for the first time in 2019, the bitcoin price has once again crashed below the $10,000 level.
Bitcoin Price Slips to $9,950
The flagship cryptocurrency had been in a downtrend since peaking near $14,000 on June 26, suffering multiple major sell-offs en route to today’s plunge, which thrust BTC down to $9,950 on Bitstamp.
The bitcoin price crashed below $10,000 on Bitstamp before bouncing back across the threshold. | Source: TradingView
Bitcoin has now careened nearly $4,000 below its year-to-date high – a high it set less than a week ago. That works out to a six-day decline of around 30%.
On the other hand, the bitcoin price has still gained 23% over the past month and a staggering 183% since January 1.
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Analyst: Crypto Market Correction is Healthy
Earlier today, eToro Senior Market Analyst Mati Greenspan said that he would be “quite surprised” if BTC managed to hold the line at $10,000. Even so, he warned crypto investors not to fret.
“Many have named the psychological support level of $10,000 (blue line) as the key level of support but personally, I’d be quite surprised if it holds that level,” he wrote in daily market commentary shared with CCN. “If it does break through, it’s not really something for bitcoin bulls to be fearful of. We can see even stronger levels of support just below. But even if those levels give, critical support is as far down as $5,000 (red line).”
Bitcoin’s critical support line is near $5,000. | Source: eToro
Greenspan said that the decline was healthy given how quickly the crypto market had surged in recent days.
Bitcoin last traded at $10,275 after bouncing off its low at $9,950.
Click here for a real-time bitcoin price chart.