Bitcoin price went below $4K in a day characterized by a bear market not only for cryptocurrencies but also for the traditional asset market. Bitcoin bear market continues to strike traders and holders alike. This bear run also dragged the whole cryptocurrency market with it. The whole market is returning all the revenue achieved since last December.
Bitcoin Price Down
Bitcoin price is still going down today, even going below the $4K price mark, a psychological support level that was breached. It went down by more than 10% and has also dragged the whole cryptocurrency market with it. Other currencies that have been affected by the bear market today has been Stellar, Bitcoin Cash, and Ethereum, all of them shedding more than 15% of its value.
Most of the market cryptocurrency analysts had predicted this, mentioning $3K as a good support level that must be tested. If this level does not stop the fall, analysts believe that bitcoin could reach $1K. While a common reason for this disastrous performance for cryptocurrencies is the recent hard fork that triggered a fear-fueled huge selloff, things are not so clear anymore.
The bitcoin cash hard fork is already over, but the fall continues. While trading for these currencies has not normalized completely, the hostilities ended.
Not Only Bitcoin Is Down
But this time, it is not just bitcoin that is losing so much value. The traditional stock market is also shedding its gains in a big way. S&P 500, one of the most important stocks indexes has gone down too. Nasdaq has also been dropping its value, with tech stocks losing more than 20% all combined. Facebook, Apple, Amazon, Netflix, and Google lost a big chunk of their value this Thanksgiving week.
It seems that this whole bear market is connected in some way, and that opinion has been emitted by some analysts. Investors that put their money in the tech market are the ones that are most inclined to invest in cryptocurrencies. However, despite this bear market, there are people that still believe in bitcoin. Some believe it will reach at least $15K before the end of the year. Tom Lee, the founder of Fundstrat and cryptocurrency analyst, is one of them
He has declared that while this nosedive is affecting prices before December, bitcoin will have the strength to turn the tide at its favor. But looking at bitcoin prices today, it seems highly unlikely. First, it will have to hold the $3K level. Even that seems difficult.