https://s26.postimg.org/x5d1wahop/shutterstock_85721332.jpg

Bitcoin makes another all time high, and then falls sharply.

Bitcoin did what many analysts and prognosticators had been calling for, it finally touched that big round $5,000 number.

Then it did what many probably expected as well, it dropped fairly sharply as profit taking ensued.

The current sell off is the biggest since early July.

https://s26.postimg.org/b4s41x9mx/coindesk-bpi-chart.jpg

However, it's not just Bitcoin as the entire cryptocurrency market cap is pulling back sharply as well.

After topping $180 Billion last night, the cryptocurrency market cap is currently sitting near $160 Billion.

Just like Bitcoin, this sell off in the crypto space is also the biggest since July. When the cryptocurrency market cap dropped roughly 12% in a single day, from $72 Billion down to $62 Billion.

Just as Bitcoin dragged many alt coins higher, it also seems to pull them all lower when it decides to drop.

Which is evidenced by Steem and many other altcoins seeing red this morning.

Steem is currently trading down around $1.30 after spending most of the week in the $1.50-$1.60 range.

https://s26.postimg.org/xps2yzax5/Screenshot_37_LI.jpg

The big question on everyone's mind is whether this is a run of the mill correction or the start of a bear market in the space?

Bitcoin has died 27 times, and risen back to life each time. There isn't much reason to believe this time would be any different.

However, is this dip going to be a bear trap that anyone who sells or shorts right here is going to regret within the next couple of weeks or is it going to be the start of a bear market in the space?

For me personally, with all the new institutional interest and media attention around Bitcoin and the entire crypto space, I would venture to guess that any dip will be bought right now.

People have been waiting for an entry point and they literally haven't had any, not a single dip since things turned up in mid July.

This would be their first opportunity to buy a pull back, for that reason I think this will be short lived and higher highs are likely on the way again within the next several weeks.

https://s26.postimg.org/tkh6d2d55/2b7adb2036410956a5d827d7d07956c7--bear-tattoos-w.jpg

What do you think?

Bear trap?

Start of bear market?

Top of the crypto markets for the foreseeable future?

Let me know in the comments below.

Stay informed my friends.

Sources:

https://news.bitcoin.com/bitcoin-hits-5000-usd-new-all-time-high/

https://www.coindesk.com/bitcoin-drops-5000-crypto-markets-see-13-billion-sell-off/

Image Sources:

http://kryptomoney.com/bitcoin-price-may-drop/

https://www.coindesk.com/bitcoin-drops-5000-crypto-markets-see-13-billion-sell-off/

https://coinmarketcap.com/

https://www.pinterest.com/pin/548242954609027359/

Follow me: @jrcornel