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On Saturday, after the days of Bitcoin's relative stability at $ 4,300, a new wave of selling pressure has invested cryptic investors around the world, sending Bitcoin well below its supposed support levels of $ 4,000 and $ 3,800. . The move, which came alongside an influx of trading volume, is apparently unanswered at the beginning. The capitalization of Bitcoin was reduced to only $ 62 billion, while the overcoins suffered a heavy sell-off, sending the precious resources of this sector out of metaphorical cliffs.
Related reading: Crypto Exodus continues Sunday with another $ 23 billion downloaded
Among the sufferers, crypto-centric commentators took their soapboxes on social media to publicize their controversial statements, in which they claimed that the capitulation was taking hold of the heart of cryptic investors. But, while some critics have painted a depressing picture for the crypto-market, stating their belief that $ 0 was in the Bitcoin cards, other components of the industry have taken this situation with hints of skeptical optimism.
A Bitcoin rebound may be in order, but the fund is not in
Although Bitcoin has seen a strong recovery on Sunday, with digital assets rising from $ 3,600 to $ 4,100 in a few hours, some are skeptical that a minimum has actually been reached and a reversal is under way.
Fred Wilson, a respected venture capitalist who has prospered through Dotcom Boom and Bust, has recently conducted his world-famous personal blog to define bear markets for emerging industries. Referring to his decades of experience in emerging markets, Wilson noted that while the recent performance of cryptographic assets is "lenient", investors should not step back and breathe fresh air.
Using the age-old comparison that links the initial Internet and the current cryptosystem, the New York native said that during Dotcom Boom, Amazon (AMAZ) dropped from a high to $ 90 to $ 6 in months, a staggering drop of 93%. Expressing the report of this statistic with the cryptocurrency markets, Wilson wrote:
"But for those of us who were investing in technology and technology startups in 1999-2002, that time will remain forever etched in our minds – it was a brutal period during which our belief in the Internet and its potential were tough test. "
And though he seemed hesitant to express his true conviction, the important investor added that, bearing in mind the sad historical drawdown of AMAZ, the Bitcoin under $ 4000 could only be a forerunner to lower the lows.
Murad Mahmudov, an astute cryptocurrency analyst at Princeton University, issued a similar sentiment, drawing attention to a chart of his creation that highlights the reluctance of Bitcoin to establish a good faith fund. In the table below, which quickly gained adherence on Twitter, Mahmudov stressed that a short-term rebound could be in order.
However, the trader then added that the imminent rebound could be nothing more than a bull trap or a bounce of a dead cat, which means that Bitcoin has yet to fall, probably below $ 2,500 as revealed in the chart. Mahmudov. This last analysis is interesting for a mirror of a chart that he made last week, which claimed that Bitcoin is poised in the $ 3,000 range by the end of the year.
However, the two above analysts have concluded their thoughts on the issue with a high note, so to speak, indicating that even if short-term pain is likely, the long-term prospects of cryptographic resources and blockchain technologies still have to be muffled. As mentioned by Wilson:
"I think some cryptographic resources (and probably a number of cryptographic resources) will have a price chart like the current Amazon one in 18 years, but we'll have to do what Amazon did, squat down and build value and survive, for quite a while "To get there, and I think things will get worse before they get better".
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