Bitcoin is back below $4,000 a week after the cryptocurrency began showing signs that its November price drop could be reversed. Due to an increased interest by buyers who were hoping to make a profit on the latest price correction Bitcoin shot up, only to begin dropping down again on Monday as the daily trading volume began to subside.
As CNBC reports, after finishing November with big losses, the cryptocurrency slid down approximately 8% this Monday, crushing hopes of a new price boost. For comparison, during the same month last year Bitcoin was rising extremely fast, going for a target of $20,000 per BTC and a gain of 40% over the whole year, mostly due to strong interest during the holiday season.
But this year, the price charts painted an entirely different picture. As of Monday, the coin reached a 73% drop in price since the start of 2018 while the 24-hour volume was down 56% for the same period. The market capitalization was particularly hit, dropping down by a staggering 80% since the first of January.
Bitcoin’s in the Red; Further Drops Expected
During the last week, Bitcoin drew another curvy line on the price chart, dropping from a peak of $4,413.02 on Thursday afternoon only to rise again and then hit a 1-week bottom of $3,832.75 on Monday. During this period, the 24-hour trading volume went over $7.1 billion at the time of the price increase but later subsided as Bitcoin’s value dropped to reach a current $4.8 billion. Naturally, the market capitalization also dropped during this period and currently sits at $67.9 billion.
As our technical analysis shows, the market is dominated by bears, with 9 out of 12 technical oscillators and all 12 moving averages being in the red and sending “sell” signals. The SMA 100 has also fallen down below the SMA 200, showing there is less resistance to be found on the downward course. As the lower high on the 5-hour down channel has been made, Bitcoin is expected to break $3,800 and form a new Lower Low near $3,600. As always, keep your eyes on the price as nothing can be said for certain in times like these.
UK Miners Still Expect a “Bright” Future
According to Forbes magazine, a UK-listed BTC mining company, Argo Blockchain, has recently informed its shareholders that there is no cause to worry about the future of the cryptocurrency mining industry, despite the latest price drops. As the magazine reports, Argo Blockchain has said in a trading update that the demand for its Bitcoin mining services and products is still strong.
As the update reads, the company reveals that their mining packages are still “being snapped up” as fast as they are developed and that the demand for the services “continues to exceed supply”. The assurance comes on the heels of a steep drop in the company’s share prices since it was first listed on the London Stock Exchange back in the summer.
The Director and co-founder of the company, Mike Edwards, reportedly believes that the long-term prospects of Argo Blockchain are still “bright” enough for them to “look to the future with confidence”.
As official data shows, Argo has sold 10,325 mining packages during November, over 100% more than their previous record of 4,200 packages on October 1st. But on the other side of the spectrum, you have companies like Canaan Creative – the second-largest manufacturer or mining rigs – who recently decided to sell all their rigs at a price of only $200 per unit, over $500 less than their initial asking price.