It seems the bearish Bitcoin price trend is slowly coming to an end. It is still way too early to tell how things will evolve for Bitcoin over the next few days, but things are slowly looking up. More specifically, the Bitcoin price is still down from its recent all-time high, but the massive dip to almost US$6,400 has been reversed for now. With the Bitcoin price back to US$6,645 right now, it will be interesting to see how long it takes to reach US$7,000 again.
Bitcoin Trend Reversal Seems Imminent
No one can deny the past few days have been pretty tense for Bitcoin. With the Bitcoin price reaching a new all-time high a few days ago, things were looking pretty bullish. Ever since that time, however, the Bitcoin price has dropped by over US$1,200 in a few days. Most of this money has flown to Bitcoin Cash, pushing this altcoin to a new all-time high in the process. Whether or not both coins’ trends will reverse themselves remains to be seen. Right now, it looks pretty likely, though.
More specifically, the Bitcoin price is still down by over 6% in the past 24 hours. Six percent of such a high value results in quite a lot of money lost for Bitcoin holders. Then again, the Bitcoin price was more than US$300 lower just a few hours ago, which further indicates things are not looking all that bad right now. This doesn’t mean we will see the Bitcoin price recover in full before the weekend is over, mind you, but it also shows the sky isn’t falling either. It’s an interesting situation to keep an eye on in the coming hours, to say the very least.
The volatile Bitcoin price ride has certainly allowed speculators to make a lot of money. Over the past 24 hours alone, the Bitcoin price went from US$7,110 to US$6,436 and is now back at US$6,645. These wild fluctuations create a lot of day trading opportunities for Bitcoin holders. In particular, margin traders will reap the benefits of opening longs and shorts on Bitcoin. There is so much momentum in place right now that the market can easily swing either way and completely reverse itself over the course of 24 hours.
One thing still working in Bitcoin’s favor is how its trading volume is still incredibly solid right now. With over US$5.18 billion worth of BTC changing hands in the past 24 hours, things are still looking pretty bullish for Bitcoin. Then again, the Bitcoin Cash trading volume is close behind, despite a US$1 billion gap in between the two. We’ve also seen Ethereum generate close to US$1 billion and Tether surpassing US$740 million in volume over these past 24 hours. All of this momentum is incredibly bullish for cryptocurrency in general, though no one knows how things will evolve in the future.
Unlike all other major cryptocurrencies, the recent Bitcoin trading volume is not dominated by Bithumb for a change. Instead, Bitfinex is the busiest exchange for Bitcoin, with a US$160 million lead over Bithumb. bitFlyer still rounds out the top three exchanges, although it faces some strong competition from Bittrex’s BCC/BTC pair. We’ve seen a total of 12 different trading pairs generate over US$100 million in 24-hour volume, which doesn’t happen all that often.
In the end, no one can make any accurate predictions as to where the Bitcoin price is headed. Right now, it seems a small recovery is in store, but it may not provide a stable support for the long run. One has to keep in mind the current Bitcoin price still represents a 550% increase from January of this year. There is no reason to panic, and Bitcoin is not going away anytime soon. It is always important to look at the bigger picture rather than what happened today or in the past week. Bitcoin is still the king of cryptocurrencies, and it will be incredibly difficult to change that.