After falling around 15 percent this week, Bitcoin has passed two resistance levels after it has been relatively stable over the past few weeks.
Bitcoin fell by over 10 percent following its plunge past a key resistance level after a period of relative smoothness.
Those who back Bitcoin are all asking the question of how low will it go? From this level, it just seems to be dropping even further after its biggest one day drop in under a year.
At the current time of writing, Bitcoin is priced at $5,527 but earlier in the day it did fall below the $5,500 level. As with the rest of the market, Bitcoin is in the red by 10.70 percent and no one knows what is next for the world’s leading cryptocurrency.
The coin actually fell by to the $5,220 region after it fell past the key resistance level earlier in the week following a period of decent stability. This trend continues across the markets as the majority of cryptocurrencies continue to slide.
As everything seemed to calm down a bit after Bloomberg’s Galaxy Crypto Index dropped by around 15 percent. Speculation has accumulated following this which claim that it includes the debut of the new version of Bitcoin Cash. investors are debating whether the coin is just persuading miners and traders away from the largest crypto after it broke itself off from the original Bitcoin last year.
As reported by Vancouver Sun:
“The plunge disrupted a trend of lower daily spikes and sell-offs for cryptocurrencies, often criticized in financial markets as being too unstable for use as in investment or as a currency. Only a week ago, Bitcoin’s 30-day volatility had dropped to 21.2, below that of the Standard & Poor’s 500 index for the first time in two years, according to prices compiled by Bitstamp.”
The head of trading for the Asia Pacific as Oanda Corp, Stephen Innes wrote about the matter in a note and said, “the Bitcoin Cash hard fork is proving far more destabilizing than initially thought as numerous competing factions muddy the landscape.”
In addition to this Innes also said that the disruption over the new Bitcoin Cash fork has created to much commotion and that it has triggered an escape plan for most people. He said that an eventual break below $5,000 for Bitcoin “opens the door to a test of US$2,500 as Bitcoin retail traders move from buying on dip to full-out panic mode.”
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