We already have the dreaded cuts in bitcoin. During the last week it has lost just over 50% of its value in the financial markets. It was something announced by a good part of the financial analysts who pointed out that this could happen at the beginning of the new one. Although maybe caught off guard to a good part of the small and medium investors. As it can be in your own case. In any case, we are talking about many amounts of money and that without a doubt the operations carried out in this innovative and risky financial asset are immersed.
However, other experts in the financial markets believe that the price of this cryptocurrency is falling, it may represent a real business opportunity. To the point that you can obtain large capital gains from these precise moments. In any case, it is a very risky operation that requires a remarkable assessment of the decision you are going to make in this kind of special investment.
Well, as in any investment process, first of all I must warn that you must know exactly what you are doing. Both in stocks and cryptoassets. Lately many investors are approaching this market in search of profitability disregarding the implicit risk. And this is very high for all investor profiles. They are not active for everyone and you should always keep that in mind. Of course it is true that you can earn a lot of money, a lot. But for the same reasons, they are exposed to leaving you a lot of euros along the way. Perhaps a very important part of your investment.
Reasons for the fall of bitcoin
When looking for a cause to explain this virulent movement that has occurred in recent days, one should go to different explanations. One of the most recurrent is due to the logical correction in their prices. After such vertical increases it is very normal for their prices to adjust. In this sense, it can be considered as a very positive movement since it causes greater precision between the supply and demand of one of the most important cryptocurrencies. As is the case with securities listed on equity markets. In this sense, you do not have to worry excessively about the appearance of these cuts in their prices.
Another of the most relevant reasons to explain this drop in the price of bitcoin is due to the fact that the prices in which this financial asset was they were already very tall. Perhaps unreal from various approaches to investment. And what it contributes is that it provides you with prices more in line with what this special virtual currency is worth. This is explained by the fact that sales have clearly been imposed on purchases. With a decrease close to 60% of its real value in the financial markets.
Due to its special characteristics
On the other hand, you cannot forget that bitcoin is sustained very little logical movements. And as a consequence of this performance, the same goes up and down with such strong intensity. There are no counterbalances to calibrate the percentages that it shows every day in the markets where this virtual currency is quoted. While it is an investment that is not supported by reliable data, as on the other hand it happens with other more real financial assets. From this scenario, it should not surprise these very vertical movements in the falls that are taking place these days.
As they say in the stock market, everything that goes up quickly does not take long take the opposite direction. As is happening with this virtual currency. Not surprisingly, it is based on very speculative movements that have certainly not helped at all to settle the increases of the previous months. Its effect has been the most anticipated by many of the financial analysts who are studying these very atypical and at the same time special markets. Everything is under the complete logic of the financial markets, although with a great enhancement of their formation in prices.
At $ 89.000 levels
In any case, there is already one thing that you must have very sure from now on. It is none other than that it has abandoned the upward trend that it showed in the short term. To the point of miss the all-important $ 89.000 level. It is the first time it has happened in the last three months. And very far from the almost 20.000 that came to play at the beginning of last December. At one of its maximum levels in its price and which has become one of the reference points for it to rise again strongly in the coming months or even weeks. In any case, it will not be an easy task to achieve from now on. Especially because it has exceeded some very relevant supports such as recovering those prices with great ease.
On the other hand, and as the most important element, this virtual currency that is bitcoin has left almost 50% of its value in just a few days. With a depreciation so far this year around 40%. Something that many of the small and medium investors who had taken positions to make their savings profitable did not expect. Because now it will cost them much more to achieve their most desired goals. Or at least not in a period as fast as the one that was raised at the beginning of the year. Because of course it has not been the best start to exercise, far from it.
Declines in other cryptocurrencies
Bitcoin has not been the only one affected by these movements in the first part of 2018. If not, it also affects other last generation currencies. Where, for example, the Ripple it has also plummeted by a similar percentage, with almost a 50% depreciation from its previous value. Not surprisingly, the decline in this class of financial assets is almost general. With very few coins that have been saved from the decline since this new year began. Therefore, it will be necessary to be very attentive to its evolution from these precise moments. In case it is necessary to withdraw in the positions or if on the contrary it is a good opportunity to open the operations.
According to some analysts specialized in this important financial market, the current trend is to be in levels between 9.000 and 12.000. It would be a very reasonable area for the price of bitcoin, especially because again it can give the opportunity to enter a good part of the investors who were out of the markets at this precise moment. Although also with latent risks that are not convenient to underestimate. Because the open positions in this financial asset will be as dangerous as before. At the risk of leaving you many euros along the way. Regardless of the investment strategy that you are going to use from now on.
In clearly bearish trading
In any case, you should not be unaware that the moment of bitcoin is bearish as a result of these serious falls in its price. This for the moment is beyond any doubt if you want to have some source of information to formalize some kind of operations. Of course he is not in the best of times. Even with higher risks than before because its weakness has been accentuated little by little in recent days, even with more complicated resistances to violate. Because keep in mind that if before it was already complicated to operate with these virtual currencies, now the situation has not changed at all. You still have the same risk as from the beginning.
No longer a winning horse
From now on you should think that bitcoin is no longer that attractive investment that it seemed to you only a few months ago. Where, so far in 2018, it has taught you that you can lose, and also a lot of money. More than in other more traditional investment options. You just have to think and analyze that those investors who bet on the cryptocurrency in the middle of last year have lost around the half of all your money. In some cases, they are levels that not all users can support. To the point that you yourself are one of those who find themselves in this complicated situation.
On the other hand, there have already been a good number of analysts in this kind of market who show that at the moment there is no fundamental and solid base in the price of bitcoin. However, this is advice that has not been strongly followed with the more aggressive profile users who have wanted to get a lot of money in a short space of time. And this strategy carries far more risks than necessary. And the first collateral effect you have been able to verify during these days. Where this coin is already worth half that at the end of last year. This is a first notice for your motivations.