Bitcoin loses another 15% in value during the first one hour of Asian trading session. Although, a little slow in catching up, leading US Dollar denominated exchanges BitStamp and BitFinex followed its CNY counterparts in a high volume driven selling. This move further reinforces the position of China as the market leader in Bitcoin. While there may be early signs of capitulation, this is what it must feels like to buy at the bottom.
The price of one Bitcoin was 1660 CNY when markets closed at the end of Asian trading session on 1/12. After hitting a low of 1470 CNY during the first hour of 1/13, following an intense selling period, prices are currently consolidating in the range of 1500’s on Houbi and OkCoin. At the same time, there was a high selling volume on BTC-e which took the prices to a low of $230.
Yesterday, a cloud mining company Cex.io announced the suspension of their services due to declining Bitcoin prices. Although, the move is declared to be temporary by the CEO, the rise in mining difficulty and falling prices have baffled people involved in the industry.
After hitting a low of $255 on BitStamp and 1582 CNY on 1/4, Bitcoin markets moved into the upwards trajectory of 1800 CNY. The next day on 1/5, Bitstamp went offline after a public statement was made about an attack on their hot wallet resulting into a loss of 19,000 bitcoins. The breach of long term support at $260 was a crucial move for the overall market sentiment. Mainly because it disproved the previous held Wave Count of TA experts.
The three day correction towards the resistance point of $303 would have a shown a sign of reversal if it had been any longer. But, charts indicated another major drop incoming right after Bitstamp came back online on 1/11. Right now, the support of $250 is broken on all Bitcoin exchanges. This is showing a sign of another drop in the 230’s.
Investors are advised to wait for a confirmation of trend reversal before taking a long position. If you liked this article please follow us on twitter @btc_feed and don’t forget to subscribe to our newsletter!