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Bitcoin Price Fails to Test $10,000 Again, Alternative Cryptocurrencies Also Drop

Last Updated March 4, 2021 5:07 PM
Joseph Young
Last Updated March 4, 2021 5:07 PM

Bitcoin price has failed to secure momentum in the $10,000 region and has fallen by more than $400 over the past 24 hours, Alternative cryptocurrencies (altcoins) and tokens have followed the price trend of bitcoin, dropping in the range of 5 to 20 percent.

Where Does Bitcoin go From Here

Analysts were optimistic in regards to the price trend of bitcoin, given that the bitcoin price increased from $6,500 to $9,900 within three weeks, supported by a gradual increase in volume and demand. The consistent recovery of bitcoin allowed the Relative Strength Index (RSI) and Williams’ Percent Range (WPR) to demonstrate a neutral zone, showing neither overbought or oversold conditions.

However, as it did in its previous attempt, the bitcoin price failed to remain above $10,000 mark after briefly testing it on May 5. In other major markets such as Hong Kong and South Korea, the bitcoin price surpassed $10,000 due to their premium rates but in the US, the bitcoin price achieved $9,900 and fell back to $9,600.

At the time of reporting, the bitcoin price remains below $9,600 and it remains unclear whether bitcoin could initiate a new rally to eye an entrance into the $10,000 region. The RSI of bitcoin is currently 59.2, signifying a neutral zone. Both exponential and simple moving averages show a healthy short-term trend for bitcoin, demonstrating a strong buy signal.

Previously, the bitcoin price fell by nearly 10 percent after testing the $10,000 mark, triggered by the sell off of Mt. Gox trustee funds on cryptocurrency exchanges. At the time, the bitcoin price dropped from $9,800 to $8,800 within a single day.

Over the past 24 hours, the bitcoin price only dropped by $400 after testing $10,000, which shows that bitcoin has gained stability in the $9,500 region and is capable of bouncing back following large sell offs.

Negative Press

Once again, as the bitcoin price slumped and recorded a slight loss in value, it has started to receive negative press. Billionaire investor Warren Buffett, who is often described as one of the most successful investors in recent history, stated that bitcoin is worse than rat poison.

Buffett warned investors that bitcoin will “definitely come to a bad ending,” but admitted  that Berkshire Hathaway doesn’t own any and are not short any. “We don’t own any; we’re not short any.”

Although unlikely, analysts have stated that the negative press of bitcoin based on the baseless condemnation offered by experts in the finance sector such as Buffett.

Still, some reports have suggested that the world’s biggest investors and economists have turned to elementary school insults rather than logical arguments, which is optimistic as it shows the critics are not capable of proposing proper arguments against bitcoin that could potentially challenge the fundamentals of the cryptocurrency and blockchain technology.

In general, the cryptocurrency market is in an ideal position to rally in the short-term, as it already has surpassed $450 billion in valuation and the volume has stayed in tact in the $26 billion.

Featured image from Shutterstock.