On August 28, Bitcoin took a bear path. Its high value of $10,278 was a big drop from its value of $13,800 on June 26. Most of the popular cryptocurrencies dropped in value on August 28. Investors think that this could be related to a loss of confidence. There are a few theories going around about the drop in value of Bitcoin and other cryptocurrencies.
One idea about the drop is the $120 million buy wall on BitMEX. Somebody who trades digital coins suggested that they were trying to unload some unwanted coin. Another theory is related to the setup of a buy wall in order to manipulate prices for traders.
There have also been a lot of unusual Bitcoin transfers over the past couple of days. On August 27, a bot called Whale Alert flagged an $82 million Bitcoin transfer between two unknown wallets. Whale Alert is a cryptocurrency transaction bot based on Twitter. This was the third large and mysterious trade in as many days. On August 26, a $124 million trade of Bitcoin happened between unknown wallets. On August 24, there was a $341 million trade of Bitcoin between unknown traders. Those transfers all got consolidated to a single IP address.
Investors wonder who is behind those huge transfers and why they want so much Bitcoin. A few speculators think that Bitcoin could go down to $9,400 to $9,500 before increasing again to $11,500. In cloudier interpretation of the Bitcoin drop, some people think that Bitcoin could drop all the way to $7,650 to $8,000 in value. Different investment houses have different predictive models about what might happen based on past trading behavior.
These analysts' predictions are just probabilities. The roller coaster of Bitcoin suggests that its pull may have weakened a little. Since July, Bitcoin got as low as $9,100 two times. It seems certain that it could happen again, possibly in the next few days. Traders are keeping track of three month averages and 20 week moving averages for Bitcoin values. Chances are good that Bitcoin values will drop again before inching upward once more.