Although it is still a bit too early to say for sure, it does appear the Bitcoin price is recovering slowly. More specifically, the Bitcoin price is inching toward US$4,000 again, although reaching and maintaining that level will not be easy. Compared to a few days ago, the overall trading volume is still pretty low, though. It is certainly possible this uptrend is only temporary, but we will have to wait and see what happens.
Bitcoin Price may Surpass $4,000 Soon
To a lot of people, it is somewhat of a surprise to see the Bitcoin price reach almost US$4,000 again. The past few weeks have been anything but kind to Bitcoin and it remains to be seen if this recent trend will last longer than a few days. While there was no real reason for the Bitcoin price to go down whatsoever, no one can deny the recent trend has been pretty bearish overall. Breaking that cycle will not be easy by any stretch of the imagination.
That being said, things are looking a lot better for Bitcoin right now compared to a few days ago. After trading sideways around US$3,700 for far too long, the Bitcoin price now sits at US$3,945 and may even surpass US$4,000 in the coming hours. Do keep in mind there is still plenty of market volatility and the price may never go that high before meeting resistance again. The lower price point allowed a lot of investors to buy in and they will happily take profits along the way.
One worrying aspect about this whole ordeal is how Bitcoin still has very low trading volume. Over the past few weeks, we have grown accustomed to seeing daily volume of around US$2 billion or more. Right now, its volume is “just” US$1.3 billion, which is a lot lower than it should be under normal circumstances. It is unclear what is causing this discrepancy, but it is certainly possible things will pick up again sooner or later. After all, the actual demand for Bitcoin has not slowed down one bit, especially not in China.
Speaking of the Bitcoin trading volume, it appears most of the money is passing through Bitfinex, bitFlyer, and Bitstamp. None of these top three names is a big surprise. Bitfinex still generates nearly three times the volume of the number two exchange, which shows how many people rely on that platform in particular. It is also good to see fiat currency markets dominate the Bitcoin trading volume charts, as the world’s leading cryptocurrency shouldn’t derive its value from people dumping altcoins.
For the time being, the bigger question is whether or not the Bitcoin price will surpass US$4,000 today. While it is certainly possible, we have to keep in mind how slow and steady wins the race for cryptocurrency. After the mega-corrections we saw not too long ago, it will take some time for markets to fully recover and money to find its way back to Bitcoin. While the first steps are being taken in this regard, this is not a sprint by any means.
A lot of cryptocurrency enthusiasts will be pleased to see the Bitcoin price finally head back in the right direction. Although the overall trend for this particular cryptocurrency has been bullish all year, the corrections have made some people think twice about how this market will evolve. All signs are still very positive for Bitcoin overall, but it is doubtful we will see a US$10,000 valuation anytime soon. Then again, stranger things have happened in the cryptocurrency world.