The recent trends in the cryptocurrency market have left investors and traders in a state of speculation and surprise. Bitcoin has been showing a decline in price points and volume. This is leading to constant anticipation about what exactly will the market look like in the following year. While some look upon the trend as a needed correction due to a surgence of a variety of cryptocurrencies, other experts cannot consolidate an opinion about the recent decline yet. However, after having fallen sharply yesterday, Bitcoin's price has shown a slight rise and this has created quite a buzz. Let us take a look at more.
The price of Bitcoin seems to be crawling back up after showing quite a decline yesterday. This rise has brought an air of positivity with a calming effect for cryptocurrency enthusiasts. The cryptocurrency wonder has shown a 0.32% raise and the current trading price seems to have reached $10,443 compared to the last 24 hours. While the currency was dipping low at $9,000 levels lately, this is certainly good news. It is a significant rise even when compared to yesterday's rate of $10,198. Other cryptocurrencies also seem to have picked the cue as we have noted a rise in Ethereum as well as Ripple prices. The noted rise in these is that of 0.20%. Even though this doesn't match Bitcoin's progress in the last few hours, it certainly shows a positive overall recovery rate for cryptocurrencies in general. Anxious about learning the bitcoin’s new graph and it’s price reflection? Visit bitcoin digital.
The price of BTC reflected a sharp decline yesterday accompanied by the drop shown by most assets. Undoubtedly, the Nasdaq 100 and Dow Jones lost up to 2% of the value. At the same time, all indices showed a drop all over Europe and Asia. The same plight spread to the entirety of the commodity market. This could be ascertained by the decline reflected by silver, gold, and crude oil.
Despite the decline shown by most assets, it was not reflected by all the assets. Here are some assets that showed an increase in the last 48 hours. While the US Dollar Index showed a 0.50% raise, the CBOE volatility index doubled it all up to reflect a 1% growth. The discrepancy noted in the pricing can easily be explained by the inverse relationship shared by Bitcoin and the Dollar.
Sunday marked another happening in the cryptocurrency industry, especially concerning Bitcoin. Glassnode data reflected the greatest mining difficulty adjustment seen on record. Such a phenomenon is noted when there is a sharp hash rate decline that leads to the next block witnessing a longer release. Consequently, this leads to longer waiting periods for minors. Another negative aspect associated with it is the comparative lack of profitability.
The 'death spiral' of Bitcoin is inclusive of this situation. The central argument states that as Bitcoin mining turns unprofitable, more and more miners quit the industry. This eventually leads to a currency shortage. Bitcoin enthusiasts stick to the industry partially because of the appealing demand-supply dynamics, and that is something to note. Another important event is the upcoming launch of the world's first Bitcoin ETF. The launch is supposed to happen at Bermuda Stock Exchange and will be done by Nasdaq and Hashdex. It is certainly a vital step as several previous attempts towards the launch of an ETF in the United States have not come true.
Technical analysis of the Bitcoin Price
The daily chart points at the magnitude of decline shown yesterday by Bitcoin. Accompanied by this, the chart also happens to reflect the struggle of the price to move beyond a certain resistance level that has been fixed between $12,066-$12,438. Another important piece of information that comes along is the much-discussed bearish flag pattern that has been highlighted in red. Even though the structure is difficult to predict, a small head and shoulders pattern can also be noted.
The pair seems to have taken to a downward slope and this leads to speculation of it hitting the downside of $10,000. Despite all the information on the decline, it is necessary to understand that a simple reach above $11,222 will render this trend invalid. As this price can be seen along the upper portion of the noted bearish flag pattern, this is what the flip side could unleash.
