After yesterday’s sudden decline, it seems the Bitcoin price is trying to stabilize once again. Despite a 3.23% loss over the past 24 hours, the value holds its own around the US$2,500 mark. All other top currencies are showing signs of recovery as well, which is good to see. It is evident the upcoming August 1 deadline continues to cause fear among speculators and traders. Only time will tell how things play out, though.
Another Cryptocurrency dip in the Books
The world of Bitcoin and cryptocurrency is filled with ups and downs. Most downs are followed by ups, whereas most gains are also followed by losses. It is the inevitable cycle of life in the financial sector, as bull and bear trends go into effect at regular intervals. Financial assets can’t keep going up in value forever, nor can their value be suppressed for long periods of time either. We have seen multiple price cycles in the Bitcoin world over the past few years, as cryptocurrency remains a rather volatile asset.
That being said, every downtrend seems to lead to a quicker recovery cycle these days. Even a 10-15% Bitcoin price crash will not keep the price down all that long. Just yesterday, it looked as if the Bitcoin price was on track to go back toward the US$2,250 range, yet that never materialized in the end. In fact, the Bitcoin price didn’t drop below US$2,420 indicating that is a rather strong support level for now. Then again, no one knows what triggered this sudden sell-off either.
Price volatility is pretty common as far as the Bitcoin price is concerned. More specifically, we have seen US$100 drops or more quite regularly these past nine years. It appeared these volatile cycles were less strong over the past twelve months, unless some major bad news popped up. The rejection of the Bitcoin ETF, for example, triggered a very strong and sharp sell-off, although the markets recovered eventually and ultimately set a new all-time high.
One thing worth noting is how Korean exchanges have seemingly cooled off on Bitcoin right now. Bithumb and Korbit are usually two of the top exchanges by volume, but they rank #3 and #15 respectively right now. That is very surprising, especially when considering how Bithumb only has half of Bitfinex’ fiat currency volume as we speak. It seems something is going in Korea, although it may just have to do with the upcoming Bitcoin Cash hard fork.
As is to be expected, other cryptocurrency markets are suffering from this seemingly negative trend as well. Dash is the only top 5 cryptocurrency to note any gains right now, although 0.18% is not exactly the most spectacular number either. IOTA and Stratis are two other top 10 currencies noting a 10.72% and 6.62% gain respectively. Overall, it seems we are stuck in an accumulation phase right now, although the momentum can easily swing in either direction over the next few hours.
With relatively strong buy support in place, it is only a matter of time until the Bitcoin price starts to go up again. Once that happens, nearly all major cryptocurrencies will follow automatically. It is evident the upcoming August 1st hard fork causes quite a bit of confusion and controversy, albeit no one knows for sure what kind of impact it will make. These are very interesting times for all cryptocurrency holders, that much is evident.
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