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Cryptocurrency Continues to Slump, Bitcoin Remains Stable at $8,200

Joseph Young
Bitcoin price

The cryptocurrency market has continued to slump over the past few weeks, as both major and minor cryptocurrencies followed the price trend of bitcoin.

Bitcoin’s Lead

Throughout the past 24 hours, bitcoin hasn’t recorded large price movements and remained in the range of $7,900 to $8,300. At the time of reporting, the price of bitcoin is $8,190, with relatively low trading volumes to support its recovery.

Tom Lee, an analyst at Wall Street firm Fundstrat and known to be a bitcoin bull, stated that the price of bitcoin will likely drop to a yearly low before recording a swift recovery.

“When sentiment is this weak, the market is increasingly ’fire, ready, aim’ — meaning, any headline today is likely to trigger selling,” wrote Lee, who emphasized that the next support level is $7,535, followed by $5,873. Given that the $8,370 support level has been breached, Lee explained that it is possible bitcoin could fall to $7,535, and make its way down to $5,873 before recovering to its previous levels.

While traders still believe the price of bitcoin will likely suffer another correction before a short-term recovery occurs, billionaires including Peter Thiel and Alan Howard have expressed their optimism towards the cryptocurrency market.

Howard, who acquired a massive amount of cryptocurrencies in 2017, stated that he has obtained even more digital assets this year, essentially buying the “dip.”

“Hedge fund billionaire Alan Howard made sizable personal investments in cryptocurrencies last year and plans to put more of his own money into digital assets and the blockchain technology behind them, according to people with knowledge of the matter,” Bloomberg reported.

At the Economic Club in New York City, billionaire investor Peter Thiel stated that he is still long on bitcoin, and that he is more optimistic towards the cryptocurrency than before. Thiel emphasized that he is skeptical towards everything else, including major cryptocurrencies, apart from bitcoin.