The cryptocurrency bitcoin (BTC) has been trending lower for the past two weeks, suffering from panic-selling as a result of increasingly pessimistic views of its future. On the U.S.-based Bitfinex exchange , BTC has fallen 25% since the beginning of this month, dropping below $8,000. On other major exchanges, the price has fallen closer to 35%. While bitcoin has recovered a bit from its yearly low, it remains well below the $14,000 level it topped out at in December.
The price of Bitcoin dropped over $1,000 in the last four days, reaching a low of $6,449. The price recovered somewhat, and is now hovering around the $7,000 mark, but this is still a far cry from the $8,000 Bitcoin reached before the New Year. The decline was not unexpected, though: Bitcoin has been suffering from a general slump since the beginning of the year, and once it hit $10k in late December the market became ripe for a huge correction. Most analysts agree that the drop is due to the overall bearishness towards Bitcoin and other cryptocurrencies, and will continue as long as mainstream media keeps warning people to “be wary” of investing in crypto assets. ~~
Bitcoin is in the news a lot, but for all the wrong reasons. After breaking the $10,000 barrier on November 2nd, it has continued to fall, with one bitcoin now worth about $8,000. Some analysts blame China, where the government banned bitcoin exchanges and the mining of bitcoin, and India, where the government’s recent decision to withdraw high-denomination currency notes led to a surge in demand for bitcoin as a way to move money offshore. Others blame the recent hack of a bitcoin exchange called Bitfinex. Whatever the cause, bitcoin has fallen from one of the most exciting investments of the last few years to a commodity that is almost impossible to sell.
Yesterday, the leading cryptocurrency experienced its biggest one-day drop in 14 months, dropping to $30,000 on most crypto-currency exchanges before slightly recovering its losses. The entire crypto-currency market suffered a massive drop yesterday, with bitcoin dropping below $40,000 and trading at $30,000 on most crypto-currency exchanges. The market could sell off more if negative sentiment increases. For now, the $50,000 level will serve as a resistance level for bitcoin as it was previously a support area for the leading cryptocurrency. However, analysts believe prices could rise further as the market needs to calm down after a massive sell-off, such as Michael Van de Poppe, who says the market will now consolidate for a while. It is very likely, especially after a streak like this, that we will not return to the prices of the real lows for #Bitcoin. But it is also likely that we will consolidate at higher levels for some time. To be bored. And that the market will settle down again. – Michaël van de Poppe (@CryptoMichNL) 19. May 2021
BTC Price Forecast
The 4-hour chart of BTC/USD shows that the crypto-currency has suffered losses, but is gradually recovering. After bitcoin hit a low of $30,000 24 hours ago, it has begun to consolidate and the price has risen to currently trade around $40,000. BTC/USD is currently trying to break through the $40,000 level. If successful, it may target the 30-day exponential moving average ($43,530). 4 hour chart of BTC/USD. Source: Coincide Breaking through this level could propel BTC into another attempt to reach resistance at $46,808. However, in the current down economy, it may be difficult for bitcoin to overcome the $50k resistance level in the near future. The $50k psychological range will be a challenge for bitcoin at the moment, as it has provided important support in the past. Bitcoin’s technical indicators suggest that the downtrend may not be over yet. Both the MACD and RSI remain in bearish territory. If sellers fail to seriously breach the $40,000 mark, they could resume their market dominance. If this happens, bitcoin could fall below $35,000 in the coming hours or days.The largest cryptocurrency by market cap, Bitcoin has hit a six-day low of $5700, on the heels of the SEC’s decision to postpone their decision on the CBOE’s bitcoin ETF application. The SEC cited the need for more time as they are concerned about the unregulated nature of the spot market and the potential for price manipulation. The announcement came amidst rumors that the Chinese government is going to ban cryptocurrency trading, a rumor that has spread since February when the country announced it would be banning all initial coin offerings and would be closing all domestic cryptocurrency exchanges. Both of these news stories are major shocks to the cryptocurrency market, which was riding a massive bull run in 2017 that saw bitcoin hit an all time high of just over $. Read more about bitcoin price prediction and let us know what you think.
Frequently Asked Questions
Why is Bitcoin’s price dropping?
Many experts expected the Bitcoin price to increase in March, given the end of the U.S. tax season and the tax implications associated with cashing out on their capital gains. However, the opposite happened. Bitcoin’s price continued to fluctuate, only to drop as low as $8,600, which is more than 10% lower than it was on February 28. The price of bitcoin (BTC-USD) continued to sell off on Monday, as investors reacted to the digital currency’s failure to bounce back over $8,000. The move comes as the world’s largest bitcoin exchange struggles to deal with a significant backlog of transactions and growing fears of a user-activated soft fork.
Why crypto market is going down today?
While the crypto market experienced some minor gains during the last days of last week, it has been suffering from a severe correction today, making it the worst day of the week so far. The prices of all major cryptocurrencies are going down, as the negative bearish trend is being strengthened by yet another sell-off. According to the latest reports, this bearish trend might be triggered by the upcoming U.S. tax day, on April 15. The cryptocurrency market is in turmoil once again. After hitting an all-time high of over $800 billion, the market has since lost more than $400 million in value. While some of the steep plunge is due to investors liquidating their assets to pay for the holidays, much of it is due to the currently “risk off” global market. As an investor, how can you protect yourself in this volatile market?
Is Bitcoin a good investment 2021?
As you would have read in our previous post, the value of the Bitcoin has fluctuated dramatically in the last two weeks. While many people believe that the price will drop even further, there is a sizeable minority who has started to see the light at the end of the tunnel, and has decided that Bitcoin is a good investment for 2021. The biggest draw for investors is that Bitcoin offers something that no other currency does: anonymity. While you may have seen the phrase “Theft By Deception” in the headlines, these hacks were made possible by the fact that these institutions failed to collect the proper information from their customers. While it’s true that Bitcoin is anonymous, it’s not untraceable. All While most investors are wary of putting their money into cryptocurrencies, it is important to remember that Bitcoin has performed well over the past year. This is all the more surprising when you consider how many bad news stories have come out about Bitcoin, including several major flash crashes. While it is true that Bitcoin has bounced back after each crash, there are still many experts who believe that Bitcoin is a bad investment.
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