Despite short-term negativism, the constant outflow of BTC from exchanges contributes to the shortage of coins. The trend is in the hands of the sellers, but the price is above a crucial support zone.

The price of Bitcoin broke through the most relevant immediate support and confirmed a short-term downward trend. In that way, it is closing a rather negative month, but there should be no reason to worry much about that.

Bitcoin is trading at around USD 53,904 and has accumulated a loss of 1.9% in the last 24 hours. Its trading volume is above USD 23.2 billion, and its market capitalization is about USD 1.02 trillion, according to CoinGecko.

Although there is short-term negativism in the market, the constant outflow of BTC from exchanges contributes to the shortage of coins. That can only lead to an increase in the price as long as demand increases or remains stable.

Liquidations of leveraged purchases have been causing problems, but that panic selling usually dissipates quickly. Therefore, the price of the crypto asset could soon resume the previous trend.

Bitcoin Has Had a Determining Behavior in the Last Week

The 4-hour candlestick chart indicates a significant bearish behavior crossing a sideways range where the price remained locked for nearly two weeks.

The current short-term trend is in the hands of the sellers, but the price is above a significant support zone. There could be a possibility to see an upward reaction to resume the higher trend.

The most likely scenario is that there will be some more sales in the next few days. However, that fall could not achieve a lower low, creating a double bottom and the possible bottom of the pullback.

The Price of BTC Is Just a Small Setback

The decline in the price of Bitcoin in the last two weeks is just a necessary setback after a strong bullish rally.

The bulls are still the dominant force and may cause surprise in the short term.

At the moment, the drop shows no signs that the price has already reached the bottom, so there could be higher sales. The closest support that the price should break is at USD 52,920.

However, when the value of Bitcoin resumes the trend, the developing momentum could drive it above its previous all-time high.

That will not happen this month, but the history of Bitcoin shows that its price usually gives pleasant surprises in December.

Bitcoin Already Surpasses PayPal and Could Reach Visa and MasterCard

Market intelligence platform Blockdata recently stated that the Bitcoin network moves more money than PayPal. It also estimates that its volume will exceed that of MasterCard and Visa within five years.

Blockdata warns that those networks do not work for the same purpose. However, it decided to compare the volume of money that each one handles to measure the magnitude of Bitcoin.

The firm published a report specifying that the Bitcoin network processed around USD 489 billion per quarter this year. In that way, it surpasses the payment platform PayPal, which made around USD 302 billion.

Despite the fall in the price of the pioneering cryptocurrency, it has shown that it can recover from its worst lows. The Bitcoin network stands close to leading companies, demonstrating the growing interest from investors in that asset.

By Alexander Salazar

LEAVE A REPLY

Please enter your comment!
Please enter your name here