During the past week, Bitcoin suffered another sharp drop thanks to a strong bearish sentiment on the trading markets. But with Easter behind us and the start of a new week, a bullish trading wave has changed the course of the price charts and pushed Bitcoin’s USD price upwards, giving hope to long-sellers that their recent investments could pay off.
According to CNBC, Bitcoin just finished with its worst Q1 ever, marking a 45% decline since January and even surpassing the price drops from 2014 when Mt.Gox’s closure lead to a major price correction. However, as reported by the media portal, this doesn’t mean that Bitcoin is doomed because, historically speaking, Q2 has always been a more successful period for the cryptocurrency.
CNBC cite the words of Brian Kelly – contributor to their “Fast Money” segment – who says that “seasonal tail winds” like a “shift in sentiment” could take the price up in Q2 this year. Moreover, the end of tax season and the pullback of reports of tougher regulation in major markets like the US and South Korea are likewise to allow the price to grow as the fear in traders subdues.
Market at a Standstill
During the past week, Bitcoin’s price went from reaching a peak of $8,115.17 last Wednesday to dropping as low as $6,545.18 on Sunday afternoon. As the trading volume shows, there has been an increase in trading interest over the weekend which hints that a strong selling wave had swept the market and drove the price downwards. But after reaching a peak of $7.4 billion, the trading volume has since subsided to the current $5 billion while the market cap ended at $125.4 billion, for now.
Our technical analysis shows that the future course for Bitcoin’s price remains uncertain, as both short-term and long-term charts don’t point in any clear direction. On a short time-frame, 4 out of 12 oscillators and 10 moving averages are pro-buy, showing that the trading market is tilting towards a price increase. However, with longer channels showing a different picture and the monthly charts turning neutral, it will be up to the next trading sessions to either push the price upwards over $8,000 or lead it down further below over the next period. So, keep your eyes on your coins as everything is possible at this time.
Millennials in South Korea Feel Crypto Drop Aftershock
As detailed in an interesting new report from the Verge, many South Koreans aged 20-36 have invested in cryptocurrencies at the start of 2017, seeing fast profits as “the only way out” from the confines of an expensive housing market and a way in to a stable life. Yet, being part of the investment hype ended negatively for many as prices crashed down since this year’s start.
According to statistics, it is estimated than 3 in 10 paid workers in the country have made investments in cryptocurrencies during December 2017 – a month when Bitcoin hit a record high of $20,000. But as the prices plunged to more than 50% from their December value, an increase in “Bitcoin blues” and divorces was noted by psychologists in the country.
The investment boom in South Korea also forced the prices to become even 51% higher than in other major markets, costing locals more to invest than many others around the globe. Thus, when the prices dropped in January, the crash reportedly wreaked havoc on many investors and there came in various reports showing users destroying furniture in rage and even multiple updates of cryptocurrency investors committing suicide.