It would appear the momentum is turning against all top cryptocurrencies once again. While this is anything but surprising, it has become apparent this was just to be a matter of time. When looking at the bigger picture, there’s no reason to think the full recovery is in place yet. As such, we now see the Bitcoin price dropping to nearly $8.000 again, albeit it remains to be seen if that level will hold.
Although a temporary dip is nothing to be concerned about when dealing with cryptocurrencies, the current Bitcoin price momentum can turn extremely bearish pretty quickly. We have seen things like that happen before, and it is very likely things will head in that direction fairly soon. Late last week, we saw positive Bitcoin price movements, effectively carrying the value from $7m100 all the way to $8m300 with relatively little effort.
For those who have been around in cryptocurrency for more than a few months, it quickly becomes evident such price momentum will not effectively last very long. In this particular case, we are looking at a potential bearish trend which began forming late last night. Albeit things remain in the green for some time now it now seems the upcoming losses will be quite steep as well. We have already lost nearly $300 in just a few hours, which will trigger another massive sell-off eventually.
It is a bit unclear what is fueling this sudden bearish pressure. There is no reason for anyone to think governments will effectively ban Bitcoin or prevent people from using the only tool which provides them with financial freedom. At the same time, volatility is the name of the game where Bitcoin is concerned, and it seems we will have a bit of a rough period ahead.
With $5.51bn in 24-hour trading volume, things are not looking all that bad for Bitcoin as of right now. Even though the Bitcoin price is currently suffering from a dip the trading volume is not slowing down, which is pretty interesting to keep an eye on. Assuming the bears do not take control of the market, interesting things are bound to happen to the Bitcoin price.
Similar to most other days, Bitfinex is still leading the charge in terms of trading volume.That may not necessarily last much longer, as Binance’s USDT pair is just $1m in volume behind Bitfinex as of right now. OKEx completes the top three with another USDT pair, which is rather interesting. We see 2 fiat currency pairs and three USDT markets in the top 5 as of right now, making for a nice mix of pairs and exchanges.
How all of this will affect the Bitcoin price moving forward, remains to be determined. It is very likely we will see the Bitcoin price drop below $8,000 in the next few hours, although things may turn out just alright in the long run. Cryptocurrencies are incredibly volatile at all times, and it seems that situation will not come to change in the near future. Whether or not that is a good thing, remains to be determined.