Bitcoin Saw A Sharp Decrease After Reaching Nearly $14,000

Bitcoin saw a sharp decrease as it lost 9% of its value only on July 02, which makes the crypto lose roughly 30% of its value compared to its highest peak after 18 months.

Bitcoin, which experienced recent strong growth making it get a peak of $13,880 last Wednesday when it surged passed $12,000 and $13,000 marks, has fallen down to under $10,000 on Tuesday, according to the price history shown on CoinDesk.

The recent surge of bitcoin is considered a result of Facebook's announcement that it is launching a new crypto coin called Libra, an official sign that this tech giant along with multiple other companies are jumping into the growing industry.

According to traders, it was not stock catalysts that played a part in the decrease but it was rather due to largely technical trading. Many other popular crypto coins also saw slight decreases as in ETH with a 4$ fall.

It is unknown if the falls will keep continuing in the following days or it will soon bounce back to another surge. While many blockchain researchers including ex-Wall Street executive Tone Vays think that the crypto winter is not ending yet, others believe that this is a good sign of a healthy market.

Mati Greenspan, a professional market analyst from eToro, described the fall as:

As we have seen bitcoin's parabolic state, it is comprehensible that a short break is needed to help prevent the coin from being overheated.

According to John Todaro, cryptocurrency research director of TradeBlock, a recess is necessary at the moment to cool off and it is ideal to trade in the $9,000 to $11,000 range:

However, a longer decline also won't bring positive signs to the crypto coin.