Is $10,000 now the ‘Bottom’ for Bitcoin?

The last few weeks have been somewhat of a rollercoaster in the crypto markets.

Following the correction of the crypto markets on the 16th January which saw Bitcoin’s price (as well as other alt-coins) drop around 40%, the price has been somewhat ‘stable’ as it fluctuated between $10,000 to $12,000 appearing very bullish, and almost ready for a breakout.

There has been severe speculation surrounding South Korea on whether it will follow China and ban crypto currency trading, or will it simply introduce stricter regulations to prevent fraud and other criminal activities?

Without a doubt, South Korea, as well as other Asian countries, play a significant role in the value of crypto currencies. Despite this uncertainty, and a decrease of 10% in the value of Bitcoin, the overall market capacity remains around $500,000,000,000 

Does this mean we have a new ‘Bottom’?

Potentially.

Throughout January we have seen multiple corrections, bad publicity from wall street and great uncertainty in the Asian markets. Despite this, the price of bitcoin fails to drop below $9,500, and essentially fails to dip below the levels seen at the start of December 2017. It almost always seems to recover slightly once this level has been breached. This combined with the fact that the market cap has all but halved this month, and the situation isn’t as bad as it seemed.

This is not to say that the price may not fall further, it simply is a sign that it will take something big for bitcoin to really plummet into the $8,000 range or below.

 

Gvidas Beniulis

International Political Economy student & Cryptocurrency enthusiast.

Founder of OurEconomy.

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