There may be a peak to follow this trough
It’s more up and down than a Table Mountain cable car, but the Bitcoin news over this last week has made glum reading for online traders.
The crypto-currency has been the talk of the last 12 months, with investors looking to ride the crest of a wave by buying into the digital cash equivalent. However, it’s been a very twitchy two months for Bitcoin, which has experienced more lows than highs in 2018.
Why has Bitcoin dropped in value?
For the first time, people are beginning to believe the bubble is bursting. Bitcoin has taken a huge hit due to certain governments announcing restrictions on how it can be traded. India, China and the USA have all made their plans to limit the currency public.
Also, the number of people buying Bitcoin soared over December. Both due to the spirit of goodwill, and those who received monetary bonuses making their first steps into crypto-currency investment. The surge drove the value down as more people began gradually taking a slice of the pie.
Will Bitcoin make a recovery?
But writing Bitcoin’s obituary may ultimately prove to be very premature. Rob Sluymer is a technical strategists at Fundstrat Global Advisors. He told Bloomberg that Bitcoin will see a recovery, as market conditions are beginning to form for a rebound in crypto-currencies.
Sluymer says there is “a technical case to support an oversold trading rally from current levels.”
What is Bitcoin currently worth?
Bill Baruch is the President of trading company Blue Line Futures. Speaking to CNBC, he expects to see Bitcoin rise above the $8,650 mark. This is a crucial figure, as he believes it will signal a recovery and restore investor confidence in Bitcoin rearing its head over $10,000 again.
Just yesterday, the currency was trading at just under $8,000 per Bitcoin. That has since risen to $8,460 as of 09:00 SAST.
Bitcoin news is ‘not disastrous’
Baruch also claims that this slump is no disaster. Rather, it is a result of Bitcoin seeing its market share redistributed. It has enjoyed a long spell as the top crypto-currency in the world. But people are now trying to jump on ‘the next big thing’ – other digital currencies like Ripple and Ethereum – in the digital currency trade.
Tom Head
https://www.thesouthafrican.com/bitcoin-news-why-it-will-bounce-back/