Bitcoin has remained under pressure for some time now, and the currency recently failed to hold some key levels that suggest even lower prices may be in store. In fact, Bitcoin is now potentially setting its sighs on the 6k level, a long ways from last year’s highs near 20k.
One of the themes that has been discussed with increasing frequency is that Bitcoin and other cryptos are currently undergoing a major shift. That is to say that many of the wanna-be crypto millionaires have finally given up, and short-term traders may have largely thrown in the towel as well.
In a recent article from Marketwatch.com, some have suggested that such a shift may be a good thing for the long-term prospects of the industry. The article stated:
“The days of overnight bitcoin millionaires are coming to a close. As the price of the No. 1 digital currency continues to fall — declining more than 40% in the first quarter — the crypto hall of fame is fast becoming a hall of shame.
While the story of Erik Finman, who became a millionaire after buying bitcoinBTCUSD, -2.25% with a cash gift from his grandmother in 2011, is nice, for those fundamental believers in the decentralized technology, the fewer day traders flipping digital currency for a quick profit, the better.
“It has been this correction that’s been mainly responsible for an evolution in investor attitude. I believe that now the overwhelming majority of investors do not view cryptocurrencies as a way to make a fast buck, as perhaps previously many more might have done,” said Nigel Green, founder and chief executive at deVere Group, in an email to MarketWatch.
“Rather, they are now investing in Bitcoin, Ethereum, Ripple, Dash and Litecoin, among others, as they can see the core value over a longer time horizon.”
It’s a “seismic shift,” according to Green.”
The recent weakness in the currencies could potentially pave the way for more long-term buying interest, the only question may be at what price levels.
Bitcoin: This cryptocurrency spent the week moving mostly sideways between 6.5 and 7.5k. After another major decline lower, the currency is still looking to find a bottom. According to some analysts, such a bottom may not be found until the currency reaches 4k or less.
Bitcoin Cash: This crypto has moved between $600 and $720 and thus far has not shown any significant signs of a turnaround. The currency remains in a firm downtrend on the long time frame as well, and could see prices below $500 before finding a long-term bottom.
Ethereum: This crypto is under some moderate pressure on Friday, down over 4% on the session. The market could be headed considerably lower before finding more solid footing. The currency did spend a lot of time around the $250 level previously, and could target a return to that level.
Ethereum Classic: This crypto had traded between $16 and $32 for a period of time, but now seems to be breaking down into a lower price range. Like other cryptos, the currency has been weighed down by the notion of tighter regulation and has simply lacked any significant bullish inputs to fuel a sustainable rally higher.
Litecoin: This crypto saw prices range from $132 to $116 this week, and is now moving slightly lower to close out the week, down nearly 5% on the day. This crypto originally broke out from the $80 level, and it could be headed back to that level before finding a more sustainable bottom.
Ripple: This crypto has also been under pressure, and is down several percent on Friday to finish the trading week. The currency has not been able to put anything together in terms of upside price action since out climbed to over $3 a few months ago. Like other cryptos, the ongoing lack of any bullish catalyst has weighed on the currency, and the notion of further regulatory scrutiny has also been a factor.
Although there has not been much to cheer about in the crypt space recently, the currencies could be another major step closer to finding a long-term bottom from which they may make a more sustainable climb higher. In addition, as more and more uses are discussed in the cryptocurrency space, the currencies may start to garner more interest from long-term investors.