Today looks like another very bleak day for the Bitcoin price. This also means altcoin prices will continue to drop quite a bit over the next few hours. Right now, we are looking at a 6.91% Bitcoin price decline over the past 24 hours. Although people are still buying Bitcoin, the price is slowly going down towards the US$4,250 mark. It is possible we will see a trend reversal later today, to say the least.
It is never all that appealing to see the Bitcoin price drop further after a few days of downward momentum. Although a dip during the weekend is not surprising by any means, momentum usually reverses itself during the first few days of the following week. Today will not necessarily be one of these days, as the downward momentum continues unabated. Right now, the Bitcoin price is hovering around US$4,340 and it looks like it may keep dropping for quite some time to come.
Price corrections are not uncommon in the world of cryptocurrency by any means. Everything that goes up in value pretty sharply will go through a rough patch sooner or later. For Bitcoin, that rough patch has been present for a few days now and it seems we are going to see a lower Bitcoin price in the coming hours. People looking to stock up on some additional BTC will be quite happy with this trend as it allows them to make some additional purchases in the coming hours.
Even though Bitcoin still shows a trading volume of over US$2 billion, it seems most of the trades are related to selling BTC right now. No one knows for sure if this trend will continue, as we have seen some trend reversals materialize over the past few weeks. Upward momentum is commonly followed by a flash crash, whereas downward trends are followed by sharp price increases. Right now, Bitcoin seems to be caught between the two with no indication of what will happen next.
Bitfinex, HitBTC, and bitFlyer are still the largest exchanges by trading volume as we speak. Bitfinex has a strong lead over the rest, as it is the only trading platform seeing over US$100 million in Bitcoin trading volume right now. Eight out of the top 10 markets by volume are related to fiat currency trading, which is good to see. Unfortunately, with so many people seemingly cashing out, these markets have been driving the Bitcoin price down even further.
As one would expect, this negative Bitcoin price momentum is also affecting all other cryptocurrencies in the market right now. None of the main currencies show any positive gains over the past 24 hours, which is only to be expected. After all, altcoin prices are inherently linked to the Bitcoin price, even though some people would like to think otherwise. Now would be a good time for altcoins to shine, but it seems none of them are even remotely capable of doing so.
It is difficult to judge where the Bitcoin price will head next. It is evident the price can go a lot lower than it is right now, yet it could bounce back toward US$4,600 in a heartbeat as well. There are a lot of different opinions on what is causing this downward price momentum right now and how the markets will evolve in the coming days. It is evident a lot of people will be completely wrong in their predictions. All we can hope for is to see the Bitcoin price rebound sooner rather than later.
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