With its long-spent booster rockets a distant memory, the main engine fought courageously for almost three days before one final puff of smoke marked the point where the nose slowly dipped below the horizon and a seemingly irrecoverable dive began. Sunday’s curious sharp rise which began what many believed to be the original cryptocurrency’s recovery from a two-month slump shuddered sideways, powered by the hopes of investors keen to see a push through the $4,050 resistance line. Alas, it was not to be. Instead (and as predicted by Express.co.uk on Tuesday), after a few days walking the tightrope bitcoin fell off a cliff at the other side.
It was a sudden and dramatic reversal of the upwards surge that created a fanfare of excitement at the start of the week.
And while we may have accurately called it a few days ago, what happens next is anyone’s guess.
The direction which bitcoin takes from this point cannot be predicted by anyone – no matter how good they are at evaluating markets.
If anyone can map out the next few days and weeks then a medal should be issued for luck rather than judgement.
What we are seeing now is the dark side of a concept that most crypto-believers feel is a powerful force for good.
Unfortunately, the disappointingly continuous volatility of bitcoin and other cryptocurrencies erodes its potential as the future of world finance.
The violent swings in value may be attractive to those fast moving in-and-out traders happy to make a few dollars here and there amid the oscillations of an unsteady market, but they are no good for good investors who want to be in this game for the long term.
Once again, bitcoin’s prospects of revival were undone by a lack of volume.
The number of buyers against sellers simply did not have the ability to slingshot bitcoin beyond the psychological barrier of $4,050 and up to the next challenge of $4,400.
It very quickly dropped to $3,800 before collapsing into the arms of $3,600 last night.
This morning, bitcoin was clinging on to whatever trades it could cling to at around $3,600.
There are historical levels of support waiting around $3,550 and even lower at $3,250.
The questions is, though, do you follow the path of optimism or pessimism?
For the optimist, a little time spent lingering around $3,500 means there is an opportunity to regroup and stage a comeback with a new wave of buyers keen to chance their arm at a lower price.
However, those with a pessimistic viewpoint will no doubt wonder if those buyers, having seen two sharp drops, would be more interested in holding back and seeing if the price will tumble further.
There are many out there who feel a purge is coming.
If they are right, then this market is destined to be the property of the pessimists.
In short, be surprised if bitcoin breaks out of this downturn, but do not be at all surprised if this goes all the way to the bottom.
Coin Rivet is a website bringing news, information, analysis, opinion and insight from the fast-moving blockchain world.