Bitcoin has had a particularly bad month 2 months so far with prices steadily dropping, ever so softly, it has been very slight, but this has raised fears of a crash, similar to 2017. Analysts across the world are justifying this as temporary setbacks as the market skews towards the sellers’ side. Let us look at the changes that bitcoin has undergone in the past year and how it changes in the future.
Predicting, bitcoin prices are extremely difficult, just as difficult as predicting stock market changes. Currently, it sits at 9078 USD which is lower than it was a month ago by a considerable margin. The rise and fall have been extremely constant this year with price matching what it was last year. The months of April and June saw a particularly heavy hike on BTC as men and women all over the world saw their normal 401k and similar retirement savings almost disappear entirely with the Covid-19 crash. It is now returning to the past state before the sudden hike.
CEO of Digital Assets Data, an analytics firm, Mike Alfred indicates that this drop is due to the actions of miners as a good number of them are offloading their collections. On June 23rd miners sold more than 300% of the BTC that they mined that day. MRI or Miner’s Rolling inventory has declined a lot as they hold onto a lot more than they mine, before the 23rd while it flew downwards on the 23rd.
A CNN crypto-analyst was quoted. “Bitcoin is likely to head for a re-test of the daily MA 200, after breaching, retesting and getting rejected at the up slanting trendline from the March 20 peak, May 10 lows and beyond”
For the uninitiated, bitcoin mining is the process of adding new records of transactions to the public ledger called a blockchain. A blockchain is a public ledger in digital form that is distributed across the entire peer to peer network, the public ledger has blocks that are linked to each other via cryptography, hence the term cryptocurrency.
A 200-day MA or moving average is a line on charts that represent the mean price over 200 days, these give potential traders an idea on the direction of the trends of the price
The downward slopes seem to reflect badly on the surface but looking at it from a purely cyclic perspective, bitcoin is showing signs of an eventual hike upwards. Maybe investing is a good idea.
