Even though there is no real reason for the Bitcoin price to be going down right now, we are seeing a lot of sell pressure in the market. More specifically, the BTC price has dipped by another 5.39% overnight and now seems to be heading toward the US$3,500 mark once again. This is not a positive sign, yet it remains to be seen how things will play out in the next few days.
Bitcoin Price Continues to Lose Ground
This month has not been all that positive for the Bitcoin price. There have been a lot of dips over the past few weeks and it looks as if things will not improve whatsoever. More specifically, the past 24 hours have resulted in a 5.39% value decline once again, pushing the Bitcoin price back down to US$3,676.97. That’s not a positive development by any means, and it is certainly possible things will get even worse before they get better.
A lot of people will not be too pleased with the Bitcoin price going down again. In most cases, weekends have proven to be disastrous for the Bitcoin price. However, the past few weeks have introduced even more negative market pressure than before. A few scares by the Chinese government have certainly shaken things up quite a bit. However, that volatility should be well behind us by now. Interestingly enough, the Bitcoin price is not responding in kind.
With the Bitcoin price dropping below US$3,700, it is very difficult to tell what the future holds. If the current trend keeps up, dipping to US$3,500 or lower is certainly possible. At the same time, we may see a strong market bounce in the next few hours as well. Cryptocurrency is always a volatile market and that situation will not change anytime soon. The bigger question is whether or not Bitcoin can regain some of its lost trading volume over the next few days.
To be more precise, we mentioned yesterday how the Bitcoin trading volume was a lot lower than normal. Today is no different, as the 24-hour volume remains below US$1.5 billion. That is somewhat of a surprise, especially considering that there is no reason whatsoever for this lack of interest. Bitcoin’s biggest markets by volume are Bitfinex, Bitstamp, and bitFlyer right now. It is still odd to see Bitfinex generating over three times the volume of Bitstamp, though.
Until the trading volume picks up, it is unlikely the Bitcoin price will increase anytime soon. It is evident the market has turned bearish for the time being. If the previous “dip and bearish” trends are an example, this situation may last anywhere from a few days to several months. We can only hope it is not the latter, as that would have the potential to wipe out all of Bitcoin’s gains throughout 2017. Only time will tell what the future holds.
Turning this ship around will be pretty challenging as well. There is little to no major news coming out in support of Bitcoin or other cryptocurrencies right now. Repercussions related to China’s crackdown on CNY trading related to cryptocurrency are still dominating headlines all over the world. That is pretty peculiar, considering China plays no major role in the world of Bitcoin trading right now. We can only hope to see the Bitcoin price stabilize and go up again over the weekend, although that seems highly unlikely at this point in time.