Bitcoin dips into the $13,000 range and we’re running out of good reasons why

Today was another tumultuous day for Bitcoin as it dropped into the low $13,000 range and is currently bouncing around between $13,000 – $14,000 seemingly finding some kind of support around the $13,100 level. On top of high volatility in the world’s favorite crypto, CoinDesk and CoinBase seem to be having a fairly substantial disagreement about pricing as Bitcoin currently price $745 higher on CoinBase than CoinDesk…

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So something weird is going on right now. While Friday’s dip to $10,000 was attributed for the most part (or at least speculated) to profit taking, it’s hard to know what exactly is happening in the world of Bitcoin right now. For some, this decline off the mid-$15,000 price yesterday means this is an even better buying opportunity:

“We are buyers of bitcoin on this pullback,” Fundstrat co-founder Tom Lee said in a Friday note. “The intrinsic/fundamental value of bitcoin has risen in the past month given the surge of new wallets and hence, explains the rise in our short-term target price.” (Source – CNBC)

While most veteran Bitcoin traders are chanting HODL right now (a popular term that means hold on for dear life) new investors are panicking, especially those who did crazy things like mortgaging their home to buy Bitcoin at $19,000. Still, most veteran investors will tell you that dips like these are incredibly normal and actually represent a good buying opportunity to essentially get Bitcoin at a discount.

Still, the recent volatility has caused a lot of new doubt into the viability of Bitcoin and Blockchain technology as a whole. Here are some recent tweets that have been making the rounds from the bears:

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Of course, for every tweet about Bitcoin being a bubble or about how deep it will dip are a dozen others where veteran traders and investment analysts share their thoughts, and most seem just as bullish as they were at $19,000. I’ve heard a lot of rumors about a support at $10,000 and another at $8,000 – I’ve also heard people say Bitcoin is headed down to $100 or lower.

While it’s fun to watch people speculate from both sides, the reality is that every week in the world of Bitcoin brings with it new market dynamics and moves everyone (veterans alike) into uncharted territory. While it’s easy for people who missed out on Bitcoin to get excited when it drops so they can say, “I told you so” – it’s also easy for veterans to say “we’ve been here before and survived, these noobs don’t know anything.”

No matter what side of the fence you’re on, the reality is that there really isn’t any data you can look at to predict what Bitcoin is going to do next. Yes, a ton of people who had never invested in Bitcoin jumped in the mix this month. At the same time, a lot of people who had invested in Bitcoin when it was much lower did absolutely cash out close to the peak at $20,000.

Like I said above, the reality is nobody really knows what is causing Bitcoin to go up or down any more. There are lots of theories but with Christmas just a day a way let’s be honest, your guess is as good as mine. I personally find myself in the camp of other long-time Bitcoin investors and am personally buying since I also think this is a dip and the chance to get Bitcoin at a discount.

What do you think? Is the mid $13,000’s going to be a low everyone wish they bought at six months from now or is this still just the beginning of a steady decline?

 

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