Bitcoin is once again going through some waves in the trading department, and it appears as if a certain amount of traders are looking to push the price down. A lot of coins have been sold in the past thirty minutes, and there seems to be less buying action going on. It is unlikely we will see US$710 once again in the next few days, and more downward pressure may be coming.
The Downward Bitcoin Price Pressure
Although it does not take that much volume to let the Bitcoin price move in either direction, there is still a lot of money involved when coins are bought or sold. Right now, there is a lot of selling action going on, and the Bitcoin price is taking a beating across all exchanges. Given the recent price surge, this downward trend was to be expected at some point.
Volatility has not been a significant part of Bitcoin trading for some time now, but these current price swings are bringing back the “good old days” for traders. With the Bitcoin price swinging between US$660 and US$690, flipping Bitcoin over and over again can quickly become a lucrative business for experienced traders. Plus, there are the OTC markets as well, to long or short Bitcoin without actually getting involved in the cryptocurrency.
There was a similar downward trend during the day yesterday as well, right after the Bitcoin price was showing a sudden uptrend. At its peak, the Bitcoin price touched US$725 for a brief moment, before dropping down to US$656.22. Quite a margin for traders to take advantage of, and most them undoubtedly did.
Things started looking up again after this negative Bitcoin price pressure, though, and things seemed to stabilize around the US$700 mark again. But it looks like there is a lot of resistance at this level, and we are currently in another downtrend. The lowest price point during this dip was US$655.45, after chipping away towards the US$700 level earlier this morning.
Such a trend will probably continue for several hours, and there is plenty of money to be made in the process. Buyers and sellers of Bitcoin will try to steer the price in a particular direction, and both upward and downward changes are possible at this point. Reaching a Bitcoin price above US$715 again does not seem to be on the agenda for the coming days.
Source: Bitcoinwisdom
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