The sleuth of bears are creeping back into the market as prices fail to climb back up to the $330 levels. After 2 consecutive bear traps which were discussed in my last technical analysis, it looks like the bears at OKCoin are not giving up this time.
One user on reddit got so fed up with the current trend that he decided to take matters into his own hands and shoot up those bears:
Trading volume has died down significantly as most traders are taking it easy on the weekend. Many are awaiting the results of the upcoming Fed meeting which will be held on monday in regards to
Review and determination by the Board of Governors of the advance and discount rates to be charged by the Federal Reserve Banks.
As the UK government freaks out over encryption and digital currencies, and the media continues to spread rumors of a bitcoin ban traders on r/BitcoinMarkets seem bearish and expect the price to drop further. With companies such as Circle and BitPay turning their back onto bitcoin due to it’s negative image and low use cases and moving towards embracing the underlying technology, the future for the cryptocurrency seems uncertain. However, Circle doesn’t have a great reputation in the community and customers are turning to other options with the Circle limits increase last month, as a user describes on reddit:
Originally, my limit was around $2000/week I believe. So I deposited 8.4 bitcoins today to withdraw to my bank. Just to see that my limit has, without notification, been changed to $300/week.
In addition, BitPay was just recently hacked in a social engineering attack for over $1m worth of bitcoins. To add insult to injury, BitPay’s insurer refused to cover the damages and the two entities are currently in a legal battle. It comes to no surprise why companies such as Circle and BitPay want to turn their back away from bitcoin and use it “under the hood” according to circle’s CEO:
@OscarWGrut Not an accurate view of .@circlepay strategy, but the more companies who use bitcoin "under the hood", the more bitcoin succeeds
— Jeremy Allaire (@jerallaire) November 22, 2015
On the bright side, if we compare bitcoin’s market price to a classic bubble we can see a very close relation:
The above chart is by far one of the most accurate prediction of the bitcoin price made so far. The chart was drafted by RelaxIKnowWhatImDoing a year ago right after the major bull trap. According to the chart bitcoin should now be in a healthy growth phase, so for those long term believers there is hope. Bitcoin development closely resemble the early internet in the 1990s, we may not see another ATH for a few years, but one thing is for certain, bitcoin is here to stay and no matter how many companies try to sweep it under the rug and turn it’s back to bitcoin it will still remain the first and most powerful peer to peer distributed payment network.
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