Another tough week for Bitcoin as the leading cryptocurrency had a significant price correction that was triggered by a selling sentiment. As Bitcoin’s price dropped under $9,000, other top cryptocurrencies followed suit and suffered losses before starting to normalize again when Bitcoin began to recover. But, as current market signals indicate, the recovery may be temporary.
According to Investopedia, now might just be (might being the keyword) the right time to buy Bitcoin. The investment portal bases the suggestion upon numbers from “The Bitcoin Misery Index” – an index set up by Tom Lee from Fundstrat that helps investors know when the right time to buy is. Reportedly, the index uses a combination of market factors to produce a value between 0-100. The lower the value is, the better the time to start investing in Bitcoin.
The Bitcoin Misery Index is currently at a record low of 18.8, a value that hasn’t been noted ever since 2011, signaling a bad time for short term investors but an opportunity for long term traders. As Lee explains, the 4 times the index has been at “Misery” levels (under 27), there hasn’t been a case where Bitcoin didn’t grew higher within the next 12 months. Of course, his advice is to be taken with a grain of salt and doesn’t guarantee that you’ll see returns within a year if you invest now.
Market Pushed by Sellers
During the past week since our previous price update, the price of Bitcoin suffered a sharp drop triggered by the sell-off of around $400 million in Bitcoin from an unnamed Mt.Gox trustee the media are now calling the “Tokyo Whale”. The highest the price climbed during this time was on Thursday afternoon, when Bitcoin hit $10,147.40, while the lowest price point came the following morning when Bitcoin dropped down to $8,513.03.
Driving the price recoveries were changes in trading volume which increased when the price dropped to push it upwards, indicating there has been more profit-making interest during the past days. But currently, the volume has been on a decline and now sits at $5.7 billion, while the market cap is at $154.9 billion.
Our technical analysis shows that the market is very pro-sell, with 9 out of 12 oscillators and all 12 moving averages showing bearish signals. The SMA 100 has dropped below the SMA 200 on this time-frame, indicating there is less resistance to the downward course. If the selling pressure doesn’t stop, we might be looking for a drop towards $8,800.
Bitcoin Monument Placed in a Roundabout in Slovenia
While most public office holders aren’t so quick to openly praise Bitcoin, the Mayor of the small Slovenian town of Kranj has just helped erect a real monument to the cryptocurrency. As reported by
Reuters, the picturesque old town in the vicinity of the Slovenian Alps has been decorated by a 3 ton Bitcoin monument that was placed inside a roundabout intersecting four roads.
The monument was built in the shape of a ring within which Bitcoin’s logo has been placed. When viewed from above, one gets the impression of looking at a physical Bitcoin coin that was placed within the roundabout. According to reports, the idea for the monument was conceived via a Facebook poll launched by Mayor Bostjan Trillar which asked local voters what they wanted placed in the new roundabout.
The roundabout has now become the first Blockchain and Bitcoin monument in the world. Donating the money for the landmark were Slovenia-born cryptocurrency exchange Bitstamp and local firm “3fs” who reportedly split the cost.