This is the type of shake-out moment bitcoin needed in order to move to the next level — provided it survives.
I’m not speaking of any other crypto here, just bitcoin since it’s the blue chip digital currency.As the price crashed below $10,000 mark on some exchanges, bitcoin can build a base punishing the speculators who jumped in late last year.
The closing of Bitconnect — long suspected to be a Ponzi scheme within the digital currency community — will help with credibility of the platform.
What would prod bitcoin to move higher off the $10K price bottom support?
New investors jumping in on the dip, but fear and uncertainty along with doubt may impede those people from getting in. Hedge funds could be the mechanism to put in the floor on price.
The pros could jump in to take a flyer on the shakeout in am attempt to goose their lackluster market returns in order to earn the 2% and 20% fees on the funds managed.
If this is happening we will see incremental price hikes on Wednesday. A price of $12,000 at 3pm in NYC could be a tip that the pros are jumping in. That’s were the needed liquidity is to stem the personal sell off.