Ever since Bitcoin set a new all-time high yesterday afternoon, it was only a matter of time until the momentum would sour again. After all, every new all-time high is met with a slight retracement before the next leg upward. Right now, the Bitcoin price is back below US$6,000, down from US$6,170 yesterday evening. A lot of people are wondering what’s next for the Bitcoin price, but things are still looking pretty good.
Bitcoin Price dip is a Positive Sign
Most Bitcoin traders have gotten used to seeing the Bitcoin price go up, retrace, and go up again. These cycles of gaining value, correcting, and gaining more value have become a lot more common these days. While Bitcoin may be seeing less overall volatility compared to a few years ago, the current Bitcoin price swings are often a lot bigger in terms of USD value. That is not necessarily a bad or strange thing, especially when looking at the current Bitcoin market as a whole.
To put this into perspective, the Bitcoin price reached a new all-time high just yesterday. With the price surpassing US$6,000 and US$6,100 in quick succession, it was evident a correction would need to occur sooner or later. These corrections don’t have to be major, mind you, but right now we are dealing with another US$250 dip. With the Bitcoin price hovering near the US$5,950 level right now, it is evident there has been a very strong pullback, although it will not last all that long.
In fact, the Bitcoin price dipped all the way down to US$5,827 overnight, which is in stark contrast to the US$6,194 all-time high we saw just a few hours prior. Particularly during the weekend, such price swings have become all the more common as of late. This doesn’t mean we will see a full-fledged retracement anytime soon either, as reaching US$6,000 again seems to be only a matter of time right now. Dips are designed to be bought, as they allow for some quick profits along the way.
Moreover, we are still seeing very strong 24-hour trading volume numbers for Bitcoin. With US$2.2 billion worth of BTC changing hands across all exchanges, it is evident there is a growing demand for the world’s leading cryptocurrency. This is not entirely surprising, especially not with a few big dips along the way after setting the latest all-time high. Though it remains to be seen what the future may hold for the Bitcoin price, things aren’t looking all that bad by any means.
The trend established over the past few weeks has not changed when it comes to the exchanges ranked by trading volume. Bitfinex is still firmly in charge, followed closely by Bithumb. bitFlyer is still in third place, as no other exchanges generated over US$100 million in 24-hour volume. This is slightly changed from yesterday, even though all top 5 exchanges are comprised solely of fiat currencies. It’s a solid trend for Bitcoin; that much is rather evident.
All things considered, this brief dip is doing the Bitcoin price some favors right now. Every new all-time high needs a small correction before the uptrend can be resumed. Even a near-$400 dip is pretty insignificant when looking at Bitcoin’s bigger picture. With just a 2.38% loss over the past 24 hours, things are still looking pretty positive for the time being. It is only a matter of time until we see US$6,000 again, and even US$6,100 isn’t completely out of reach for later today.