Bitcoin prices have gone wild since the start of the year. While on a incline marks of $1136 were broken closing in a new all time high, however, the markets were sent downwards as currently prices are at around, $963 (at the time of writing), some are concerned what 2017 holds for Bitcoin.
As seen in the graph below the huge increase in Bitcoin value was unsustainable and as such volume traded fell reflecting the true value of the Bitcoin. However Bitcoin has come a long way from its humble beginnings and as seen below…
“In 2013, when the price was 8,000 yuan, the weekly trading volume was 393,000 BTC, with an amplitude of the week up to 103%. The trading volume was very small. Today, bitcoin [prices] broke 8,000 yuan with 735m BTC trading volume, which is expected to double in a week.”
To conclude, while current Bitcoin prices may have taken a small tumble from prices seen earlier this year, many did consider small fluctuations in price to occur. This is the natural market correction coming into play as sell orders outstripped supply of dollars. While this current market movement is in line with predictions, a hard floor is present at the $950 range considering the support present. Bitcoin markets should recover to the $1000 mark within 24-48 hours. While this may not be the high of the $1100 experienced earlier, Bitcoin may not be looking to reclaim the gold standard for a while in the short term for sure. Current volatility can be taken advantage off as shorting opportunities are present across the number of exchanges. However signals currently point to stability occurring once the $1100 mark is reclaimed under current conditions.
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