Update: Bitcoin price noted a serious jump in the past hour and went over $400 again.
Well, love it or hate it, you have to admit that Bitcoin is everywhere these days. Even though the cryptocurrency entered 2016 with a promising value of over $400, as the days were passing by the Bitcoin was losing its strength and eventually it fell under $380. Many experts saw this as an early sign of a total collapse and even some of the strongest Bitcoin supporters decided to turn their back on the currency.
Nevertheless, we believe it’s too soon to pronounce the cryptocurrency dead, especially since we’ve seen similar scenarios so many times before. In case you’ve forgotten, last year the Bitcoin hit worrisome low of less than $200 per coin and then managed to jump and reach worth of $500 per coin. Therefore, we still don’t have a reason to exclude this possibility as an option.
Opposing Opinions in Reputable Media Worldwide
The recent drop in value of the Bitcoin has inspired numerous reputable media to dedicate in-depth analysis of what should be expected from the cryptocurrency. The opinions are mainly opposing and as some portals declare it doomed, other laugh at those predictions.
So, let’s first check out the media that have negative views on the Bitcoin and think that everyone should walk away from it. First, Tech Crunch focuses on infamous Mike Hearn and his declaration that the Bitcoin is a failure. Therefore, the portal mentions that Bitcoin’s promise was going up in smoke and lists lack of regulation and price fluctuation as its main cons. BBC simply wondered whether the Bitcoin was doomed, whereas The Washington Post wrote “it’s time to move on.”
On the other hand, we have a very nice article on Gizmodo named “Bitcoin has died for the 89th time.” This pretty much explains everything Bitcoin experts have been trying to say ever since the price drop started. It’s normal for an unregulated digital currency to see its value grow as well as fall. This, however, doesn’t mean that it definitely failed and that it will disappear.
Additionally, everything is normal in the Bitcoin world and one of the latest interesting events was the acquisition of Coinsetter by Kraken. Thus, Bitcoin businesses are operating normally and thousands of Bitcoin users are still exchanging, buying and selling the currency.
Price Moves around $380 Mark; Indicators Send Strong Sell Signal
The highest price the Bitcoin reached in the past 24 hours was $387.05; however, that value was hit on 19th of January and today the strongest price is a bit over $381. This day will be remembered as a day in which the price was constantly falling and it even reached a low of $375.92. The current trading price per Bitcoin is $380.67, with the currency repeatedly falling below and coming back up.
The volatility is ever growing and today it went over 60%; its current value is 60.01% with the likes to increase again. The volume, however, is still under 7k with a value of 6,333 which is not that promising when it comes to price improvement.
As a result, all 12 moving averages and 10 out of 11 technical indicators are sending a strong sell signal. These numbers reveal that the Bitcoin might continue to fall during the week. The most disturbing numbers are possibly the 200-day SMA and EMA; both their values are over $397 and they perfectly portray the constant value decrease the Bitcoin has been experiencing these past few weeks.