Topic: [2017-09-02] Bitcoin Prices Retreat From All-Time High (Read 2173 times)

Bitcoin prices retreated today, approaching $4,500 after surpassing $5,000 for the first time ever.

The price of Bitcoin fell to as little as $4,529.37 today, close to 10% below the all-time high of $5,013.91, data provided by CoinDesk's Bitcoin Price Index (BPI) reveals.

At the time of report, the cryptocurrency had bounced back slightly, trading at $4,662.30, additional BPI figures show.

[Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]


Profit Taking

As for what caused Bitcoin's modest pullback, analysts have pointed to traders taking profits.

"The technical traders were waiting to take profits at $5,000," said Brad Chun, chief investment officer of Shuttle Fund Advisor, a hedge fund that focuses on digital assets. Some of these traders even went so far as to open up short positions, he added.

A Modest Pullback

Thus far, this trader activity has only resulted in modest declines in the price of Bitcoin.

The less than 10% drop that the cryptocurrency experienced in the last 24 hours is far smaller than the sharp drop that Bitcoin prices suffered after the U.S. Securities and Exchange Commission (SEC) rejected a proposed Bitcoin exchange-traded fund in March.

When the SEC issued this ruling, the cryptocurrency fell nearly 30% in a few hours, as reported by CoinDesk.

Downside Potential

While Bitcoin prices have only dropped slightly over the last 24 hours, further declines could trigger a broader sell-off, said Petar Zivkovski, COO of leveraged cryptocurrency trading platform Whaleclub.

"I agree that this is likely a temporary pullback as long as the $4,400 support level holds," he said, adding that most likely, some market participants are simply taking profits to secure their gains as the cryptocurrency's bull market continues.

However, he emphasized that if Bitcoin prices fall below $4,400, it could trigger a long squeeze, while could cause the cryptocurrency to decline into the low $4,000s and maybe even below that level.

Investor Opportunity

While Zivkovski spoke to the potential downside, Chun offered a more optimistic assessment, stating that:

"These pull backs provide a buying opportunity for long term buyers."

Bitcoin prices have surged more 400% this year, continuing to deliver impressive gains as they benefit from a number of tailwinds.

Going forward, some believe that the cryptocurrency will keep enjoying robust gains, with one analyst recently predicting that Bitcoin prices could surpass $100,000 in 10 years, CNBC reported.

https://www.forbes.com/sites/cbovaird/2017/09/02/bitcoin-prices-retreat-from-all-time-high/#29a60fee1a46