Bitcoin Pummeled As Weak Longs Capitulate After Massive Losses
(Kitco News) - Those heady Bitcoin-U.S. dollar traders who climbed on board the bullish bandwagon after prices pushed above $10,000 a few weeks ago are now under water--after many had doubled their money in just a short time. Bitcoin-U.S. Dollar prices have careened lower in late-morning trading Wednesday and hit a six-week low. The weak-handed longs are bailing out of their big losing positions, and the exit door is seemingly shrinking on them.
Bitcoin-U.S. Dollar prices have now lost around half of their value seen just a few weeks ago. Severe technical damage on the daily chart had been inflicted recently, which had warned of an impending major sell off, and suggests still more selling pressure is coming. The bitcoin bulls are wondering if any perceived bargain hunting can stop the massive bleeding.
There's an old saying that markets can and will do anything and everything possible to frustrate the largest number of traders. Those bitcoin traders who feared missing the boat to riches a few weeks ago, are now fearful of a bitcoin market meltdown.