Our predictions from two days ago turned true and today we can see the price per coin dropped by 10 points; the Bitcoin now trades for approximately $420, which is actually good considering the negative news related to it that hit the media this Friday.
Turns out, there are many serious issues that Bitcoin users are facing and which could lead to a total collapse of the cryptocurrency and its system. Global media report that the platform is overwhelmed and unless someone does something really soon, we might witness the end of the world’s most popular virtual currency.
Obviously, these are not the first doomsday Bitcoin scenarios and we doubt that such a successful concept would simply disappear. Nonetheless, it’s important to stay informed and now what to expect. If not else, at least until these speculations are alive, the price would probably continue to fall and you’ll be prepared for it.
Bitcoin Payments Collapsing; Network Reaches Its Capacity
It seems that the Bitcoin’s main problem is the fact that too many people around the world are using it. Even though this might sound unlikely since popularity is always a good thing, the platform on which the cryptocurrency is overwhelmed and it might collapse any second now.
This is a real hot topic at the moment and it attracted the attention of many reputable media. Business Insider focused on the fact that Bitcoin payments started to fail as the network had reached its capacity, whereas Fortune called the situation a Bitcoin-aggedon. According to the Verge, Bitcoin is expanding too fast and that resulted with a collapse of payments, which currently take an average transaction time of 43 minutes in comparison to the previous 10 minutes.
Only the Guardian remained neutral, or even positive, publishing an article whose point of interest is whether the Bitcoin could be the end for Britain’s banks. The author quotes Deputy BoE governor who warned that virtual currencies could ruin banks’ ability to lend money because of the lack of deposits.
Analysis of Price Chart and Indicators
So, the question now is what our Bitcoin price chart is revealing today; first, we can see that the value of the cryptocurrency has fallen and it’s set at $418.92. It does, however, constantly move up and down for 2-3 points. Therefore, the highest price reached in the past 24 hours was $424.50, while the low noted in the same period was $418.05.
The end of March’s first week brings us volatility of over 49% and a bit lower market capitalisation than two days ago of $6.46 billion. However, the volume has increased drastically from $72,588,300 to $93,305,300; that’s always a sign of changes ahead, but this time the changes might not be good price wise. In the past 24 hours the Bitcoin’s worth has fallen for 0.16%.
This brings us to the technical indicators and the moving averages that lately are rarely on the same page. Today, the indicators (five of them) are pro-buy, whereas almost all simple and exponential moving averages (a total of 11) are sending a strong sell signal. Which of them should be taken more seriously is a question that can’t be answered; nevertheless, there are two pro-sell and four neutral indicators as well. Thus, to see the price decline rather than grow is probably the more likely scenario for the weekend.