Price has gone down to the support zone under 700, and it’s just like the sell-off has not yet hit bottom.
If drop continues, then following lower level of support is at $575 wherever price consolidated in early June.
All are asking this question “What caused this price drop?” Some say that Bitfinex technical issues is also the cause, another thing is the DAO hack, and someone say its the unstable full moon phase .
Markets signals are driven by the the entire market collective psycollogy, and this super entity buys and sells currency up and down, in most of the times in disregard of reason, like economics or supply and demand. In this perspective, the market expresses its psycological hopes and fears reflecting that in the price, instead of making rational decisions based on realfacts . Bitcoin price in a long-term reamins on the uptrend and this sell-off is a sign of some nervous apprending about past bitcoin price events .
Many bitcoin buyers that holded the currency go back into profit for the first time in more than 2 years. The fear of returning in loss, again, made them take profit, but the 2016 uptrend has gone steady and this drop is an expected event as a correction.
Even with the today’s strong sell-off, the idea that the larger advancing wave will resume remains prevalent. This correction may continue many days and can good more deep, but the advice remains the same: trade with caution and preserve your trading funds for the next months of the year.