Despite the current recovery from an aggressive last week’s selloff, which was the worst week since 2013, the downward risks still persist, as a growing number of regulators and central banks are warning against investments in cryptocurrencies, insisting on the speculative nature of the recent surge in prices.
Investors took profit recently, which looked quite reasonable considering the scale of the bull rally. And now we see new buyers entering the market at more attractive levels. However, if in the short-term this correction may be interesting, in the longer term another wave of selling is possible, and it may bring the bitcoin price even under the $15,000 area. Therefore, the bulls should be careful in the current recovery.