Bitcoin Falls But Growth Effects Continue

Cryptocurrency market has turned into a bloodbath today. Those who are against this technology will use this to say “Bitcoin has exploded”, of course, but is the current situation really bad?

Bitcoin price dropped to $ 4,253 today. During the ICO news from China, this price was around $ 4,335.

Despite this decrease, when we look at the Bitfinex volume on CoinMarketCap, we see that BTC/USD based trades It has increased by 7.11%..

Of the top 10 cryptocurrencies, Ethereum is the most affected by the bloodbath experienced today. became money and fell 12.14 percent in the last 24 hours. Bitcoin Cash, on the other hand, dropped 3.7% and is hovering around $550.

Limited Impact

First of all, it is useful to remind that. Bitcoin price dropped from $5000 to around $4200 and we call it a big drop which yes it is a big drop. However, it should not be overlooked that Bitcoin price was close to $1000 at the end of 2016. In other words, Bitcoin, which we now call “very low”, actually experienced an increase of 400% in 9 months.

After such an increase, the market’s falling a little as we are experiencing now contributes to the following 2 things:

• It will calm the market –  Some commentators have begun to compare the current state of Bitcoin to the Tulip Madness of the 16th century.. Such a drop will increase the confidence in Bitcoin.
• Is the growing interest in Bitcoin real? – The increase in the price of Bitcoin has started to attract the attention of many. Investors who missed this increase were waiting for such a decrease to invest in Bitcoin.. The fact that so many people are buying while the price of Bitcoin has dropped shows that the interest in Bitcoin is not just talk.. This means that investors are not only interested in Bitcoin, but are also willing to switch some of their portfolios to Bitcoin.. It would be bad if few or no people bought while the Bitcoin price dropped.

The Effects of Growth Still Continue

• The surge in interest that started on July 16 is still continuing and if the price hits around $4,133, this could provide support.
• Bitcoin’s actual price with the highest price predicted by the GGE (relative strength index) chart above There is a difference between the highest price reached. This situation can be called “bearish divergence”. This happens when the price of something reaches a higher value than the chart predicts.
• Bitcoin briefly peaked at $5,000, Bearish divergence shows.. However, currently closing a day below $4,133 may signal further losses and the price could drop as low as $3,769.
• Daily highs must rise above $4,611 for prices to rebound to $5,000.
• As the interest in Bitcoin is still on the rise as the chart shows, we may see a recovery in prices in a few days, in which case Bitcoin may even go above $5,000 again.

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