BTC started to decrease dramatically at about 2:15 UTC as its value fell to around $18,474, below a previous supporting area. Cointelegraph Market and TradingView data revealed that overnight on Wednesday, the BTC/USD was undergoing significant volatility. After almost 19,500 dollars of trading during the day, a bearish period of indecision was seen after hours and that ended in a sharp sell-off. Bitcoin bounced then to $17,250, which daily losses of around 5%.
“I think this is a correction before we break $20,000,” said Ki Young Ju, CEO at analytics firm CryptoQuant. “Other long-term on-chain indicators like BTC and stablecoin reserve say the potential buying pressure still prevails so far.” However, other analysts have advised about the latest turnaround gains, including Brian Kelly, host of CNBC, and Tone Vays traders, who predicted a drop in valuation to 14,000 dollars on Thursday.
The explanation for the decline is not completely clear, but it comes at a time when Brian Armstrong, CEO of Coinbase, on Wednesday night expressed his fears about the United States Treasury Department’s rumored plans to attempt to track owners of self-hosted cryptocurrency wallets. “The latest BTC price drop is the first of many tests for new money on whether they have the vision and stomach to truly invest in BTC and the future of digital finance, or if they’ll simply repeat 2018 and wash out of the market,” said Jehan Chu, co-founder and managing partner at Hong Kong-based blockchain investment and trading firm Kenetic.