Bitcoin (BTC) rose nearly 7 percent in Wednesday’s early European and late Asian trading.
Even taking into consideration today’s bounce in digital currencies, Bitcoin (BTC) and other cryptocurrencies have experienced heavy declines over the last two weeks. In the last ten days alone, Bitcoin (BTC) has lost around 30 percent of its value, whilst other cryptos have also lost similar amounts.
Sparking the heavy declines was a hard fork in Bitcoin cash which happened around mid-November. The hard fork in Bitcoin Cash (BCH) caused investors to fear reduced demand in the digital coin, whilst other analysts are concluding that a large scale global decline in crypto mining is the main catalyst behind the big and sudden sell off in the crypto sphere.
The recent sell off comes almost exactly a year since the last big crash in cryptos. December 2017 saw similar declines across the crypto markets, sparking fears that the cryptp bubble had well and truly burst. A strong start to 2018 saw cryptos, including Bitcoin (BTC) pull back some of the losses. However, the rally has not been convincing. Whilst the Daddy of all the cryptocurrencies has undertaken a semblance of a recovery, bouncing from the yearly lows of $3,450 to $4,200, not once, but twice, many crypto enthusiasts fear that the worst is yet to come for most popular of the crypto’s.
What’s Next for Bitcoin (BTC) ?
Whilst crypto bulls can enjoy today’s relief, Bitcoin’s bears may have a lot more to say in the price direction of the digital asset. Bitcoin’s most recent round of crashes, which saw the digital currency into a 40% draw down, a short-term bottom is only in its early stages. The lack of “news to drive the move” is an indicator that Bitcoin (BTC) is probably going to find some support at around the $3,500-$3,700 mark, this even if sell-side volume remains festering.
Others have touted a bottom at around the $3,000 mark for Bitcoin, with conditions within the crypto world, expected to deteriorate further as regulation tightens worldwide and the cost of mining fails to reduce.
