It has been a rather eventful day for the Bitcoin price, even though it is still early. A few hours ago, the Bitcoin price set a new all-time high of US$7,367.85. That’s a magnificent value, to say the very least, but it seems maintaining this level will be a lot more difficult than most people anticipated. In fact, the price has since dropped by nearly US$500.
Bitcoin Price All-time High and Subsequent dip
People who are new to the world of cryptocurrency may be shocked to see the Bitcoin price having dropped so sharply after a new all-time high was set. Experienced veterans of Bitcoin trading will know this is pretty common, especially during times of prolonged gains. The past 24 hours have been pretty significant for the Bitcoin price, to say the very least. It doesn’t happen all that often we see such a powerful wave of ups and downs in quick succession.
To recap, we started off the day with the Bitcoin price at US$6,590. Over the course of the past few hours, the value rose spectacularly all the way to US$7,367.85. This massive price gain can’t go on without any form of correction, which is to be expected. Then again, the sharp US$450 dip wasn’t exactly what most people had planned for either. Speculators will be quite pleased with such a dip, as it allows them to sell high and buy back in lower.
While Bitcoin price corrections happen all the time, this is a pretty big setback. In fact, one could argue the new all-time high has been rejected for the time being. As of right now, one Bitcoin is valued at US$6,864, which is quite a long way from the recent all-time high. Then again, it was to be expected that something like this would happen, thanks to profit-taking, speculation, and people simply manipulating the price to make it suit their needs.
Considering the massively inflated Bitcoin trading volume, it will be interesting to see what the future holds. Overall, the Bitcoin price is still up by 4.52% over the past 24 hours, even though this percentage should be much higher. Over US$4 billion worth of Bitcoin has changed hands over the past 24 hours, which represents nearly half of all cryptocurrency trading volume over this period. Moreover, the Bitcoin Dominance Index is back above 61%, which is pretty significant.
Bitfinex is still the largest Bitcoin exchange by trading volume, although Bithumb is separating itself from the rest of the pack as well. bitFlyer completes the top three, and we have five fiat currency markets comprising the top 5 markets ranked by volume. That’s pretty solid for Bitcoin as a whole, to say the very least. Whether or not this means we will see the Bitcoin price return to US$7,000 anytime soon is a different matter entirely.
All things considered, the bottom line is that the Bitcoin price again reached a new all-time high without too many issues. Maintaining that value is too difficult for now, although it seems like there will be a second attempt at successfully stabilizing above US$7,000. For the time being, there will be some sell pressure to contend with, as a lot of people will cash out at the first sign of a retracement.