As Bitcoin celebrates its tenth anniversary with the conviction of its success over the last decade, its low performance remains a major concern. It has also cast a shadow over its success in its ten years of existence. Although the coin was being celebrated for its stability over the last three months, October has torn off this success.
Starting from October 11 when the market dipped led by bitcoin which fell from highs of $6,500 to lows of $6,200 in just a couple of hours. After recovering and finding a position just above $6,400, This week, the coin- as well as the market in general, has suffered another big blow. The dip has seen the coin retest its $6,200 support level but fortunately has been able to hold on.
Days before the bleed, some positive news from China was expected to push Bitcoin upwards but its effort was stopped dead on its track. Finally, the Chinese “government” has allowed merchants to accept payment in form of cryptocurrencies.
In the past, China has had a lukewarm approach to cryptocurrencies banning their use back early in the year. Now, however, a court has ruled that cryptocurrencies can be used as a legal tender for purchasing goods. The announcement came after a Chinese court ruled that Bitcoin could be exchanged between individuals and businesses without breaking any financial regulations.
Although Charlie Lee’s prediction of bitcoin hitting highs of $25,000 continues to derail further, in a recent interview expressed his admiration of bitcoin’s stability. However, this recent stability has been characterized as sideways action with traders refusing to take a position in fear of prices plummeting further.
Arthur Hayes the CEO of BitMEX, on the other hand, believes there are tougher times ahead. According to him, the crypto market is going to continue the bearish trend for the next 12 to 18 months-so at least for the remainder of 2018 and the rest of 2019.
“My view is the volatility environment that exists right now could persist for another 12 to 18 months, the flatness”
At the time of press, Bitcoin is hovering around $6,391.48 marking a 0.94% price growth in the last 24 hours. This is a price pick up after yesterday, October 31, the majority of altcoins soared. The bulls are attempting to take over from the bears who have had a tight grip of the market in the last 48 hours.
