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Bitcoin Toys with $10,000 as Analysts Contemplate Depth of Correction

© Reuters.
© Reuters. – Bitcoin wavered around the $10,000 psychological level on Tuesday as analysts weigh the depth of the recent correction.

gained 2.3% to $10,540.2 on the Index by 11:00 AM ET (15:00 GMT).

With the volatility typical of the largest cryptocurrency by market capitalization, bitcoin traded in a range of nearly $1,000 on Tuesday, crossing the $10,000 handle in both directions on several occasions throughout the session.

Its intraday low of $9,728.50 overnight, on what would have been its fourth-straight day of losses, implied a 30% plunge from the 2019 high of $13,929.8 reached just six days ago.

Despite the correction, the alt coin remains well above $7,888, where a two-week rally began on June 11. Although up 176% so far this year, bitcoin remains well below record highs of nearly $20,000 reached in December 2017. analyst Pinchas Cohen said that, despite the slight rebound, “the price is clearly teetering on the edge of a bear market”.

He noted that the recent pullback caused bitcoin to drop by $4,000, roughly two-thirds of the rally seen in June.

“Strictly speaking, that should be the maximum correction within a trend,” Cohen said in daily commentary, emphasizing that anything more would increase the probability of a reversal.

Cohen did warn however that the alt coin did not necessarily fit into traditional asset analysis and said he felt inclined to bet on further correction toward the $9,000 level.

In an even more bearish stance, Nouriel Roubini, chief executive of Roubini Macro Associates, once again repeated his call for bitcoin to zero and beyond.

Despite having lost a third of its value in less than a week, Roubini indicated that it was “still a long way to less than zero as its true value is negative, not zero, given its toxic externalities!”

“It will get to zero in due time,” he said in a tweet.

Cryptocurrencies overall traded lower on Tuesday, despite gains seen in the largest coins. The total cryptocurrency market capitalization fell to $305.25 billion, compared with $310.66 billion a day earlier.

Among bitcoin’s closest rivals, rose 1.4% to $286.75, advanced 0.7% to $0.39741, increased 0.9% at $118.244, while traded up 2.6% to $403.84.

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