After hitting a high of $2760 on Bitstamp, Bitcoin is having a hard time recovering from its most recent correction. Earlier today, the cryptocurrency dropped over 10% as traders took profit, causing the price to crash to a low of $2263. After testing support at the $2300 level three times the market is on edge regarding its next move.
The past few weeks Bitcoin kept hitting new all time highs day after day. Traders have been speculating about the next correction, and it seems like the time has come. The bad news is that the sell off can cause a chain reaction and prices may topple further. The good news is that this correction may be necessary in order to allow the market to grow to a $10,000 Bitcoin.
Bitcoin is still receiving plenty of attention, especially in Japan and more recently Korea. We mentioned earlier that Bitcoin is trading at a 10% premium in Japan. If you think that is a lot, wait until you hear this.
According to Zerohedge, Bitcoin price in Korea have peaked at over $4000. That is almost double the current price of Bitcoin, this premium speaks for itself. If people are willing to spend almost double on Bitcoin that means the currency has immense value to them.
Part of the reason for the price dump may be the fact that the Coindesk Consensus conference has ended yesterday. The conference was one of the largest conferences in the world and attracted an immense amount of attention. Combine that with Bitcoin breaking new all time highs on the daily and you get a $2700 Bitcoin.
Another theory, is that speculators are selling the SegWit news today. Meaning that now that the SegWit hype is seemingly over, traders would rather take profit than risk holding further.
Some traders argue that the Bitcoin newbies who just recently got into Bitcoin are buying up because of FOMO (fear of missing out) and have no idea what SegWit or what the block size debate is even about. Vitolsa said:
“Noobs are sending price in space who have no clue what segwit, bitcoin unlimited, block size, scaling issues are. Pure greed and FOMO drives the price, stop order on also got triggered that gave more fuel to this space ship. Correction have to happen and so many who bought at the top will cry, cry and cry again and whine how their loss on Bitcoin.”
As always this is a good reminder to never buy more bitcoin that you can afford to loose. However, while the price may be volatile in the short term, my opinion is that Bitcoin’s price will grow in the long term. There is a saying: “The best time to buy bitcoin was last year, the second best time is now.”
Dislaimer: This is not trading advice, this article is for educational purposes only. If you liked this article, follow us on Twitter @themerklenews and make sure to subscribe to our newsletter to receive the latest bitcoin, cryptocurrency, and technology news.