This new development is representing about 2% of the decline in the present-day crypto trading, according to Coindesk’s Bitcoin Price Index.
Don’t forget that a minor decline was recorded, after the 28% rally of last month, which happens to be the biggest single month rally gain, since the month of April, 2020.
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Bitcoin Takes Its Place As World Leading Cryptocurrency
On the 31st of October, 2020, the world leading cryptocurrency (Bitcoin), had surged to a 33-month high of Fourteen Thousand and Ninety-Three Dollars ($14, 093).
It quickly fell back, and some analyst thought that a bigger pull-back may be experienced, in the short term.
Talking on the recent spike in the trading rates of Bitcoin, Joel Kruger a Currency Strategist at LMAX Digital, told Coindesk that;
“If the daily technical, in addition to the failure to beat the high resistance and risk-off backdrop of last year (2019) is considered, then it is reasonable to expect the possibility, for a healthy decline in the future”.
For our readers that are not entirely sure on what Bitcoin or Cryptocurrency is all about, we have provided you with a brief description on the subject matter below.
Cryptocurrencies are digital Currencies.
They are involved in digital transactions, and the records are maintained by a decentralized system, using cryptography.
It could also be referred to as a digital asset, which has been designed to function as a medium of exchange, where individuals coined ownership records, are stored in a ledger, which happens to exist in a form of computerized database, using cryptography to safeguard the transaction records.
And just as this article has explained, Bitcoin is the leading Cryptocurrency in the world.
Below are other examples of cryptocurrencies;
- Ripple Coin
- Bitcoin Cash
The Price Fluctuation of Bitcoin
Due to the failure of Bitcoin to establish a foothold, above the 2019 high of $13, 880 in June, the short-term bull fatigue, signaled by the 14-day relative strength index, has been validated.
And the result of this development, is that technical traders may feel tempted to take more profit, thereby forcing the prices to reduce.
Ashish Singhal, the CEO of Cryptocurrency Exchange Coinswitch, lent his voice by saying that there might be small corrections, since some market participants that bought at lower prices, may permanently exit the market.
Also, the Corona Virus pandemic, has induced weakness in the stock market, and this could trigger a Global demand for cash, just as it happened earlier in March.
And if this happens, it would aggravate the technical pullback.
Ashish Singhal also mentioned that the U.S. Presidential Election that has been scheduled to take place on Tuesday, could pose as another risk for the world leading cryptocurrency; The Bitcoin.
With all these obvious factors considered, the chance of Bitcoin going back to the previous hurdle-turned-support of $12, 500, cannot be overlooked.
However, Kruger added that if the market can establish above $14, 000, there could be a risk that rally would stall, in favor of a healthy retreat.
While a pullback is already obvious, analyst cannot foresee a price crash, as crypto has a strong bid from various Institution.
This statement was drop by Nick Cote; a trader and analyst.
Kindly tell us how you feel about the recent development, surrounding the fluctuation in the price and trading rates of Bitcoin.
You can easily share your opinions with us, by reaching us via the comment section.
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