Bitcoin Going Up or Down?
5 months ago Crypto News Comments Off on Bitcoin Going Up or Down?
The price of Bitcoin has recently reached near all time highs. The elephant in the room now is if the price of bitcoin will continue to go up, or will it start heading back down? The price of bitcoin dropped down to $735 from over $1150 within a couple weeks. The price since rebounded to almost $940 (Bitfinex) and at the time of this writing is at $917. As Bitcoin appears to be on the rise again, recent news from china may change the trends. China has the largest Bitcoin volume exchanges in the world. Since the beginning of 2017, Chinese Government has started to investigate these exchanges for malpractice. While none of the Chinese Bitcoin Exchanges have admitted to wrong doing, they have announced a new trading fees to start on Jan 24th 2017.
If you did not know, China previously did not charge users for trading Bitcoins, the exchanges only charged for withdraws. This led to extremely high volume on these exchanges since you could buy and sell from yourself at no cost. Since the announcement of being Investigated, it has been reported that many of the bulls are now sitting on the sidelines and waiting for price to choose direction. With the announcement of trading fees (0.2%) volume has significantly dropped on the exchanges.
With this recent news and the historical price charts, We believe the path for bitcoin has been chosen at least for now.
Pictured Above: 30 Min chart from Bitfinex on Bitcoin Wisdom. Note the stagnate price for the last few days.
Pictured Above: 1 Week Chart from Bitfinex on Bitcoin Wisdom. Note every time bitcoin moved up to fast throughout the year it corrected downward.
With the latest news from china and stepping back to look at the longer trends in bitcoin recently, it appears Bitcoin will be heading down to test support levels. We could possibly see it dip back down towards $750 or lower. If support can hold bitcoin will be quick to recover and continue it’s upward trend. The last time bitcoin reached over $1100 was largely due to a bot running on a now closed exchange. Once it was discovered what was happening the price quickly retracted back down to the $200-300 range. This time around no news of major manipulation on price has sent the price down. It appears that while china had the majority of volume, due to the no fees policy, the price may be able to sustain these levels. Even if prices were to turn downward, the bottom this time around would be in the $300-$400 range, if prices stayed the same historically. I think though that everyone wants to continue seeing Bitcoin climb, with more adaptation in countries around the world, It will continue to rise. The total supply of bitcoin is 21 Million with 16.12 Million currently available.
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