Bitcoin users find themselves at a bit of a crossroads right now. The Bitcoin price has seen spectacular growth over the past few weeks and is now going through a minor retrace. That in itself is not surprising by any means, yet it is still a bit unexpected for most users. Moreover, it appears the markets are somewhat volatile right now, as dips get bought up quickly, but small price increases are pushed back down accordingly.
Bitcoin Price Battles to Maintain $4000
It is evident the recent Bitcoin price rally would have some unpopular consequences sooner or later. In this particular case, we are going through a brief Bitcoin price dip. Briefly is perhaps understating things, though, as close to $6bn has been wiped off Bitcoin’s market cap over the past 36 hours. That is quite a lot of money, which will take some time to get back, that much is evident. Then again, a 7.5% decline is not entirely new in the world of Bitcoin either.
With the Bitcoin price still hovering around $4,000 there is no real reason to panic whatsoever. Although we were on the verge of breaking $4,500 just a few hours ago this question is expected and absolutely necessary. It is only normal some early investors and speculators are looking to take profits whenever they can. Moreover, some market makers would like nothing more than to stock up on cheaper bitcoins once again. To do that, the market price has to come down first, which is not all that easy to achieve.
Moreover, the Bitcoin trading volume is still quite strong. That is another indicator of how this negative price trend will only be temporary at best. After all, a lot of people have only recently started purchasing their first share of bitcoins and they will look for a price that will give them some decent returns. What that price point is exactly, remains to be seen, though. For many people, it could be as low as $5,000 whereas others wouldn’t mind to see the Bitcoin price go to twice that value or more.
Looking over the trading markets, no one can deny Korea plays an important role in all of cryptocurrency. Surprisingly, the Bithumb volume for Bitcoin has shifted to Bitcoin Cash almost entirely. There is still $130m worth of BTC trading volume in the past 24 hours, but it is dwarfed by what the BCH/KRW pair is doing right now. Right now, Bittrex is leading the Bitcoin trading volume charts with their Bitcoin Cash/BTC market. Bitfinex and Poloniex complete the top three. Once again, it is mainly alternative cryptocurrencies bringing in exchange volume for Bitcoin instead of Dollars, Euros, Won, and other currencies. Not a popular trend, to say the least.
There is no negative news to explain this sudden Bitcoin price downtrend, though. There are some political shenanigans on Twitter regarding BitPay, the world’s leading Bitcoin payment processor. It seems the company leans toward SegWit2x over the more traditional SegWit scaling roadmap, without clarifying that properly at first. This situation has been rectified ever since, but a lot of people are not happy with the company right now. They are not turning their back on Bitcoin, though, thus it shouldn’t negatively impact the Bitcoin price.
In the end, Bitcoin will be just fine in a few days from now. Bigger things are at play here, which seemingly directly influence cryptocurrency market movements. It is doubtful we will see a major Bitcoin price correction anytime soon, but minor dips like this one can still occur over the coming weeks. It shouldn’t take much effort for the Bitcoin price to start recovering, as there is a lot of support in place to keep the price around the same mark.An interesting development, though, that much is certain.