Bitcoin Price Plunges; Enthusiasts Walk Away From the Currency

Even though experts claimed that 2016 is going to be a year of progress for the Bitcoin, the cryptocurrency can’t seem to find the power to start moving into a positive direction. After it noted a slight price drop two days ago, today we can notice yet another decrease in value that is a reason enough for traders to start worrying.

However, we mustn’t forget that last year stared similarly bad, or even worse, for the world’s most popular digital currency. At one point, the price per Bitcoin even fell under $200; nevertheless, that didn’t stop the currency to fight back and reach almost $500 when we were 10 months deep into 2015. Therefore, this weak start doesn’t necessary mean that a bright Bitcoin future is not a possibility.

Bitcoin Enthusiast Mike Hearn Says Bitcoin is Dead

One of the strongest Bitcoin supporters, Mike Hearn, wrote in a blog post on Medium that he had lost faith in the cryptocurrency. His statement has been published in numerous reputable media; thus, even readers of Fortune can find out how the ex-enthusiast decided to sell all his coins and walk away from Bitcoin development. In the lengthy post Hearn explains how he quit his job at Google so he could dedicate on Bitcoin technology; nevertheless, according to him, politics, technological challenges and infighting have ruined the currency. Hearn concluded his addressing to all Bitcoin users with revealing his expectations for the price to plunge and described the cryptocurrency as “dead.”

On the bright side, there is speculation that PayPal is embracing Bitcoin. The reason why experts have come to that conclusion is the naming of Wences Casares to the company’s board of directors. Casares is known to Bitcoin fans as the founder and CEO of Xapo, a reputable digital wallet provider. He is a well known entrepreneur on the Bitcoin market and has a valuable experience in working with the technology. Therefore, PayPal most probably added him in the team so he could help the company to include Bitcoin in its offer.

Price Slips Under $410

Only a quick look at our price chart reveals that the currency has been constantly falling these days. The negative movement is quite obvious, especially after the plunge of around seven points noted this morning. So, if the day started with a relatively good value of almost $430, the Bitcoin soon began to fall and currently it settled at $410.91. At one point, the Bitcoin reached a daily low of under $410 or, more precisely, 409.25.

The volume is moving around 7k, with a current value of 7,701. The volatility is still over 50% and is set at 56.76%. Despite the decrease in Bitcoin’s worth, the market cap remained strong with a value of $6.14 B. These numbers, unfortunately, are in line with the claims of Hearn. Plus, indicators and averages are far from positive as well.

It’s interesting to see that because the indicators were signalling traders to sell on Wednesday and the price has been falling, the RSI and the Williams %R show that the Bitcoin is being oversold. This is rarely a good sign since it signals the demand for Bitcoin is weakening. The result from this would be, obviously, another price drop.
With such a scenario, all indicators and averages once again send a strong sell signal. Whether this period is just a rest for the currency before it starts reaching new highs or a serious sign that something’s wrong remains to be seen. Therefore, don’t forget to use stop loss orders and avoid setting your hopes too high.

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