Bitcoin reminded investors of its high volatility in the world’s biggest crypto market as it lost about $1400 in just 30minutes, a few hours ago.
BTC, the world’s biggest crypto asset by market value, initially surged in trading $12,112 in the early hours of trading on Sunday morning, reaching $12,000 since August 2019. Data from Coinmarketcap showed it plunged to about $10,638 30 minutes after that high.
“Clearing resistance at $10,000-$10,500, which coincided with the downtrend line from the late 2017 highs and first-quarter 2020 highs, established a higher high for Bitcoin confirming a new tactical uptrend,” according to Rob Sluymer, the technical strategist at Fundstrat Global Advisors LLC.
Bitcoin’s plunge was bad news for the bulls. By falling back around the $11,000 psychological support, it has shown a likely downward trend as investors start to close their positions.
Why it happened: The price of Bitcoin is so volatile because of its high use for financial gain and speculating advantages used by global investors and crypto traders. As such, individuals and hedge funds sell and buy Bitcoins as they would do for any other financial asset (stocks, bonds) with regulatory limitations.
What you should do: Nairametrics advises cautious buying in this fast-growing financial asset, as high market liquidity can expose you to significant losses and loss of funds. It’s highly recommended you seek advice from a certified financial advisor when buying these crypto assets.