After the Bitcoin price experienced big gains over the past few days, it is not entirely surprising to be seeing a small retracement. More specifically, there is a fair bit of resistance across all exchanges at the US$4,350 mark. Although the Bitcoin price surpassed this value yesterday, things have taken a slight turn for the worse over the past few hours. There is no reason for concern, though.
Bitcoin Price Faces Resistance Around $4,350
No one can deny the Bitcoin price has recently undergone a major uptrend once again, although we have not returned to the previous all-time high value just yet. Whether or not that will ever happen remains to be seen, for the time being. Right now, the Bitcoin price sits at around US$4,315 according to CoinMarketCap, although it remains to be seen how things will perform in the long run. As of now, there has been a 2.95% loss over the past 24 hours, although that is not something anyone should be overly concerned about for the time being.
Although it is unclear what is driving this sudden drop in Bitcoin’s price, it just appears to be a small market correction which would happen anyway sooner or later. Going from US$4,463 to the low US$4,300s is not necessarily something most of us would like to see, but such dips invariably occur along the way in the long run. The latest price dip is not necessarily surprising in this regard, even though some people will be worried about how things may evolve over the next few days.
It is evident this current setback will only be a temporary one, though. After all, the Bitcoin trading volume is still pretty solid, with US$1.369 billion in 24-hour volume. That is good to see, although it could go a lot higher in the long run. After all, we are still a long way away from the US$2 billion in daily trading volume we have been accustomed to for quite some time now. Unfortunately, the past week or so has seen daily trading volumes failing to surpass US$1.8 billion. Then again, this number doesn’t track decentralized and OTC trading in most cases, and thus the actual amount of trades is actually a lot higher compared to what CoinMarketCap displays right now.
Looking at the exchanges sorted by trading volume, very little has changed other than the numbers themselves. Bitfinex, Bithumb and bitFlyer still dominate the markets as we speak, which is what we have been seeing over the past 10 days. The volume generated by Bitfinex alone remains rather remarkable, considering it still represents over twice that of Bithumb. Given South Korea’s affinity for Bitcoin as of late, one would expect this gap to be a lot smaller.
No one knows for sure what the future holds for the Bitcoin price right now. This free market doesn’t necessarily respond to good and bad news whatsoever, and there is still a fair amount of manipulation going on every single day. Right now, it seems the momentum is still in favor of Bitcoin, although only time will tell how things will evolve over the next few days. After all, reaching US$5,000 again is still a viable scenario before the year is over.
For the time being, things aren’t looking out of order for the Bitcoin price either. While a setback is somewhat disappointing, we have not seen a violent Bitcoin price retracement as we did a few weeks ago. Nor is there any reason to expect a much larger dip in the near future, as there is absolutely nothing capable of influencing the value of Bitcoin itself. Companies dealing with cryptocurrency are a different matter entirely.