Bitcoin (BTC) is trading slightly upwards of $8,300 after losing about 5% in value since last week, when BTC was trading above $8,700.
BTC experienced a substantial dump earlier in the month, when the price crashed by 10%, from $8,500 to $7,700. Afterwards, it started a slow recovery, briefly touching.
Following a number of lower highs, Bitcoin now seems to be in a short-term downtrend, with the price dropping below its 200-day EMA.
Will price recover back to $10,000 and above? If so, when?
Let’s take a look at Bitcoin’s chart.
As you can see from the chart above, BTC is now back to trading below its 20-day EMA, 50-day EMA and 200-day EMA. Price was swinging between the 20-day and the 50-day EMA during early to mid-September, however, since the last week of the month, we saw the price finally closing below all EMAs.
Last week, I stated Bitcoin should be bouncing back after the drop but we might have to wait for a few more weeks while Bitcoin consolidates between $7,000 and $9,600. It seems we’re going on that direction.
As history tells us, BTC is prone to huge drops between 30% and 40%, even during bull seasons. Hence, I don’t advise to fight the trend, but to always surf it for as long as possible. Hopefully, within the next three to five weeks, we will see a major reversal after a period of serious accumulation by hodlers.
Volume has dropped from a peak of $27 billion earlier in the year to around $14 billion now, although it’s currently on a positive trend towards $15 billion.
Bitcoin’s market dominance has also slightly decreased about 2%, since early October, from 68,5% to 66,5% according to CoinMarketCap.
As veteran traders and investors usually say, smart money “buys when there’s blood on the streets”. Looking at the overall market behaviour, I’m quite confident that we’re still in a bull run, but we should enjoy these consolidation periods and take the opportunity to scoop up some more BTC.
These drops won’t last forever.
The reason why I’m confident is because it’s hard to see a different scenario. How can the markets not push higher up throughout the year after the ECB’s recent rate cuts, the continuous share buybacks from huge corporations, or the inverted bond yield shoving investors away towards riskier assets?
In addition, the repo market activity – as in loans from central banks to commercial and investment banks – has spiked to new monthly records. That adds up to another signal of weakness among most banks.
Current live Bitcoin pricing information and interactive charts are available on our site 24 hours a day. The ticker bar at the bottom of every page on our site has the latest Bitcoin price. Pricing is also available in a range of different currency equivalents:
US Dollar – BTCtoUSD
British Pound Sterling – BTCtoGBP
Japanese Yen – BTCtoJPY
Euro – BTCtoEUR
Australian Dollar – BTCtoAUD
Russian Rouble – BTCtoRUB
In August 2008, the domain name bitcoin.org was registered. On 31st October 2008, a paper was published called “Bitcoin: A Peer-to-Peer Electronic Cash System”. This was authored by Satoshi Nakamoto, the inventor of Bitcoin. To date, no one knows who this person, or people, are.
The paper outlined a method of using a P2P network for electronic transactions without “relying on trust”. On 3rd January 2009, the Bitcoin network came into existence. Nakamoto mined block number “0” (or the “genesis block”), which had a reward of 50 Bitcoins.
More Bitcoin news and information
As with any investment, it pays to do some homework before you part with your money. The prices of cryptocurrencies are volatile and go up and down quickly. This page is not recommending a particular currency or whether you should invest or not.
Disclaimer: The views and opinions expressed by the author should not be considered as financial advice.