Bitcoin Price Drops to 2018-Low at $5,825, Where will it Bottom Out?

After initially dropping less than the $6,000 region on June 23, the bitcoin price has gone through further declines below the $5,900 region. Following the four consecutive sell-offs, Bitcoin officially dropped to a yearly low.

The bitcoin price recorded a significant drop from about $8,000 to the lower end of $6,000 in February, bottoming out at about $6,050. Yet, on June 24, the decline of Bitcoin continued to the higher end of the $5,000 mark, going for the first time since early November to $5,000.

The price movement of Bitcoin is quite similar to the drop of Bitcoin in 2014 when it went through an 80 percent correction from its all-time high. Theoretically, the fall of Bitcoin in 2014 and 2018 marks no significant difference, because both corrections were initiated by the emergence of a retail investor bubble.

From May 29 to June 10, the overall cryptocurrency market, went through some recovery, recording 12 days of stability and consecutive minor gains. Yet, a massive sell-off on June 11 that resulted to the price of Bitcoin to drop suddenly from $7,700 to $6,670 triggered the beginning of yet another short-term correction, prompting Bitcoin to drop to the $5,000 region.