After having been in a slumber for most of 2018 and recording steady declines, Bitcoin returned with a bang in the first half of this year. Throughout the first six months of the year, BTC enjoyed an incredible rally that raised visions of unprecedented highs, but this all soon came to a halt.
Why the Sudden Fall?
Now, the biggest cryptocurrency in the world is in the middle of a major slump, and since its high of $14,000 earlier this year, it has slumped by more than 50%. That being said, it should be kept in mind that over the years, BTC has had bigger slumps and made strong comebacks.
Hence, it is not a surprise that most crypto analysts are still upbeat about the long-term prospects of Bitcoin. That being said, most analysts are not that optimistic when it comes to the short-term prospects of the token.
Many believe that BTC could drop further in the days and weeks to come, before making any kind of recovery. On November 24, BTC fell to $6,500 per coin, which proved to be its lowest level since May earlier this year. Analysts do not believe that $6,500 is the bottom for the token, and hence, investors can expect the token to drop further.
Managing director of Digital Capital Management, Tim Enneking, said, “We don’t see $6.5k as the bottom, although it’s the first strong candidate for that title.” The forecast should not come as pleasant news to many who might have bought the cryptocurrency when it was at its highest levels.
That being said, he went on to add that if there is going to be a rebound, then it is going to happen after Bitcoin drops further from that particular level. It should be noted that after Bitcoin hit $6,500 on November 24, it recovered the very next day and hit $7,400.
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