After Thursday’s drop from $5,400 levels to below $5,000, bitcoin has been trying to break the $5,100 level but bitcoin traders and crypto analysts are suggesting profit taking. The Crypto Dog mentioned on Twitter that it looks like a dump is coming:
— The Hodlonaut Dog📈 (@TheCryptoDog) April 13, 2019
The recent spike in bitcoin price that has touched a high of $5,410 started on April 1 from the price of $4,100 and has probably ended already. But bitcoin has gained more than 40% in two months and it is the time to lock of the profits down. The Crypto Dog is of the opinion that bitcoin will move down $5,000 level during the weekend and this downtrend would tank the whole market. He tweeted;
I hate to be that asshole who says “it’s probably going to be up, but just in case have fiat” but honestly that is exactly the position I’m in and I wholeheartedly think it’s the best play.$BTC is up 42% in 2 months, everyone is in profit. Don’t be greedy, lock some of it down.
— The Hodlonaut Dog📈 (@TheCryptoDog) April 12, 2019
It has only been just over a decade since bitcoin erupted out on the financial scene. We have seen in the past that every technological innovation takes time to grow, mature and gain acceptance in the community. Same is the case with bitcoin. There are a lot of shortcoming and issues associated with bitcoin that make bitcoin trading an unattractive option for investors in the community.
One of the biggest issues in this regard is volatility. The price of a bitcoin is very volatile. One day it is seen shooting up showing major greens and the very next day, bitcoin is down on its knees with the entire crypto market coming crashing down. As bitcoin has the highest market capitalization among the rest of cryptos, the market usually follows the trend followed by bitcoin. As a result of this volatility, a lot of people lose a lot of money owing to bitcoin trading.
Another one of the major issues is manipulation. Since the market capitalization of the entire crypto market is very small as compared to the banks and institutions, the price of bitcoin is prone to manipulation by big whales present in the game. Whales are usually accused of shifting the market in order to gain personal profits. This largely destroys the reputation of bitcoin in the financial world and the mainstream media. It is one of the burning issues associated with bitcoin right now. This is one of the issues due to which the United States Securities and Exchange Commission (SEC) has not approved a bitcoin exchange-traded fund (ETF) as of yet.