After a few days of Bitcoin price declines, the question becomes whether or not the market will ever recover. Although that is still the most likely outcome, re-establishing the previous uptrend will not go off without a hitch. Earlier today, the Bitcoin price attempted to rally again, but its initial success was shot down pretty quickly. The value is hovering around US$4,200 as we speak, but a retrace to below US$4,000 is still a very real possibility.
More ups and Downs for the Bitcoin Price
In a way, it is not entirely surprising the Bitcoin price has taken this long to recover. After all, a significant correction such as the one we saw over the past few days was to be expected. It is also a positive development, as a correction often serves as a platform for a future value increase. After all, most people hope to see the Bitcoin price increase to US$5,000 and potentially more at some point in the future. Whether or not that will happen in 2017 is hard to predict.
It appears the Bitcoin price is trying to recover as we speak. Earlier today, its price quickly jumped from just above US$4,000 to US$4,250. That uptrend was met with a fair bit of resistance by the markets, as speculators are attempting to keep the price down for the foreseeable future. Right now, those early gains are slowly being wiped out as the price heads back toward US$4,000 and potentially lower.
One thing working in Bitcoin’s favor is that the 24-hour trading volume is still growing. Despite the recent price correction, the demand to buy or sell Bitcoin has not relented in the slightest. That is a positive trend, all things considered, even though it seems the sellers are dominating the markets right now. Do keep in mind yesterday was Labor Day in the United States, which means a lot of U.S.-based traders have had to wait until today or even tomorrow to have fiat currency deposits cleared on exchanges.
As of right now, the Chinese exchanges are trying to rally the Bitcoin price in one way or another. Then again, those platforms are seeing a far lower Bitcoin price compared to the rest of the world right now. In China, one Bitcoin is trading between US$4,001 and US$4,036. That is a fair bit lower than the current global market average of US$4,180. Then again, it is possible we will see a major upward price push originating from China. Given the recent negative news pertaining to ICOs, that may not necessarily happen, though. It is, however, important to recognize that the PBoC did not make cryptocurrency illegal, just ICO projects. With over US$3.2 billion in Bitcoin 24-hour trading volume, there is nothing to worry about just yet.
There are no altcoin pairs to be found in the top five exchanges by volume, which is a good sign. It’s not good news for altcoin supporters, as people aren’t converting Bitcoin to alternative currencies right now. The bear market is still in full effect and will continue to remain in place until the markets settle down later this week. It is good to see that all top 10 exchanges by volume generated over US$100 million each, though, as that doesn’t happen very often.
All things considered, the Bitcoin price movement isn’t looking so good right now, but it’s not all bad either. This price correction will eventually play out in favor of the Bitcoin bulls. Now is a good time to keep an eye on the bigger picture. The overall Bitcoin price trend is still pretty bullish, and it is not the last time we have seen a major price spike this year. Reaching US$5,000 may not happen overnight, but it will eventually happen.