The year 2018 has not been off to a good start as far as the Bitcoin price is concerned. In fact, it has been rather problematic in many different ways, mainly thanks to the lingering technical issues. Moreover, we have not seen the Bitcoin price show any sign of stability near the $12,000 level whatsoever. Any attempt to go above this value is always rejected fairly quickly, even though the Bitcoin price hit $14,4000 not that long ago.
Over the past seven days, we have seen some interesting Bitcoin price changes. On January 15th, we had a Bitcoin price of $13,400, which was eventually followed by a quick rise to $14,400. In the past few days, this price took a steep dip all the way down to $9.600. Ever since that time, we have seen the Bitcoin price remain stuck below $12,000 for most of the time, despite some bullish momentum pushing the value to over $13,000.
It is a bit unclear what all of this means for the long-term Bitcoin price, though. After the all-time high of over $19,000 a few weeks ago, things have certainly taken a turn for the worse. It is highly doubtful we will see such a high Bitcoin value anytime soon, although the unpredictable nature of cryptocurrencies has a tendency of surprising a lot of people. Most experts remain bullish on the Bitcoin price long-term, but it is evident there is too much negative sentiment in the markets as well.
It’s impossible to review a week in Bitcoin without acknowledging Korea, so here goes: our most popular story concerned government officials profiting on advance knowledge of regulatory action. That’s right, insider trading. Everyone seems to be at it, though it doesn’t require a man on the inside – simply the ability to sense a storm coming, as futures traders appear to have done, according to Eric Wall. He notes “there was an unusual increase in short positions around January 11. At the same time, the price was just bouncing around in the 12800-14200 range.” In other words, the markets looked normal, but futures traders had an inkling that something was brewing.
On Wednesday, every asset in the cryptocurrency top 100 was covered by red. 24 hours later and we were back to fields of green.
If bitcoiners thought they had it bad, they should spare a thought for Bitconnectors. All those with their wealth locked up in the Church of Ponzi had their assets savagely crushed from $290 a token to $18. It would be heartening to say that everyone who got duped by Bitconnect has learned their lesson, but judging by the number of “victims” who are now piling into the BitConnectX ICO or Davorcoin – yet another Ponzi – the signs aren’t encouraging.
Today (Jan 22th)’s decline appears to be related to yet another country cracking down on cryptocurrencies.
According to CNN, a number of Indian banks have suspended cryptocurrency exchange accounts in the country in a bid to curb trading. Tax department officials in the subcontinent have sent out thousands of tax notices after data showed that cryptocurrency transactions worth more than US$3.5 billion had taken place in India in less than two years.
India joins South Korea and China as countries that are believed to be actively cracking down on the industry this month. India is not alone. It also seems the governments of France and Germany are planning to regulate cryptocurrencies. With the momentum of government crackdowns building on Bitcoin and its competitors it’s likely the value of many cryptocurrencies will continue to drop.
If there is one positive thing to take away from the Bitcoin price woes, it is how the 24-hour trading volume is above $10bn most of the time. That in itself is rather remarkable, and it shows there is definitely a growing demand for Bitcoin and other currencies as well. With $10.4bn in the past 24 hours, no one will deny the demand to buy and sell Bitcoin is still very strong, even during the weekend.
For now, we will have to wait and see what the next few weeks bring in terms of the Bitcoin price. More specifically, the current outlook is rather negative, as we may see another major drop to $10,000 a lot sooner than people expect. At the same time, the momentum can do a complete 180 tomorrow and the Bitcoin price may attempt to break the $14,000 resistance once again. Cryptocurrency markets are volatile and unpredictable and that situation will probably never change.
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