The recovery in Bitcoin (BTC) has again proven to be short-lived, as the price of the largest cryptocurrency has fallen back to $88,000 in mid-afternoon trading on Dec. 5.
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The price of BTC had risen back above the key threshold of $90,000 and moved as high as $93,000 in recent days, gaining more than 10% over the past five trading sessions. The rebound had investors’ fingers crossed that Bitcoin had bottomed at $84,000 and was once again on a bull run.
But it now looks like the attempted recovery has failed with Bitcoin’s price again sliding lower and continuing a decline that began on Oct. 10 when highly leveraged investors were forced to sell their BTC holdings as the price started to slip, leading to a downward spiral.
Ethereum Falls Too
Bitcoin isn’t the only cryptocurrency caught in a downdraft on Dec. 5. Ethereum, the second-largest digital asset by market capitalization, is down 4% on the day and trading right around its key support level of $3,000. Other cryptocurrencies such as Dogecoin (DOGE) are down as much as 7%.
Analysts say that investors should expect volatility to continue in the crypto sector heading into year’s end as investors turn increasingly skittish towards risk assets. Both Bitcoin and Ethereum have fallen more than 30% from the all-time highs they reached in the early autumn and summer of this year.
Is Bitcoin a Buy?
Most analysts don’t offer ratings or price targets on Bitcoin. So instead, we’ll look at the three-month performance of BTC. As one can see in the chart below, the price of Bitcoin has fallen 16.27% in the last 12 weeks.
